Better Markets, a non-profit organization dedicated to protecting the rights of investors and consumers, has once again written a letter to the U.S. Securities and Exchange Commission (SEC), criticizing the Bitcoin spot ETF. In the letter, Dennis M. Kelleher, the founder and CEO of Better Markets, expressed several concerns:
1. The high volatility and speculative nature of Bitcoin, which he believes is a financially unproductive product.
2. The potential risks the Bitcoin spot ETF may pose to American investors and retirees.
3. The possibility of fraudulent trading and high concentration of ownership.
4. The ineffectiveness of monitoring and sharing protocols in preventing manipulation.
Kelleher believes that the price of Bitcoin can remain stable for long periods of time but experience sudden fluctuations during certain periods, which he believes poses a risk to the public.
Better Markets is a non-profit organization in the United States that is committed to protecting the rights of investors and consumers, as well as promoting financial reform and regulation to enhance transparency and fairness in financial markets.
FTX had previously attempted to donate $1 million to Better Markets in order to obtain approval from the U.S. Commodity Futures Trading Commission (CFTC) for SBF’s proposed clearing model. However, Dennis M. Kelleher firmly rejected the donation and urged the CFTC to reject SBF’s proposal.
This is not the first time that Better Markets has criticized the Bitcoin spot ETF. Stephen Hall, the organization’s Legal Director and securities expert, submitted a comment to the SEC in August last year, listing the dark history of the cryptocurrency industry.
In conclusion, the approval or rejection of the Bitcoin ETF is indeed important as it may bring market manipulation and fraud risks to a wider range of investors.