Better Markets Urges SEC to Deny All Applications for Bitcoin ETFs


Nonprofit organization Better Markets in letters SEC urged the agency to reject applications to launch a bitcoin ETF, citing “potential risks for investors.” This was reported in a press release.

According to legal director Stephen Hall, the crypto industry has suffered losses of $ 2 trillion.

“Multiple enforcement actions, bankruptcies, criminal prosecutions. Dozens of lawsuits due to lies, fraud and theft. Meanwhile, the main beneficiaries of the cryptocurrencies craze are criminals who use them to distribute ransomware, money laundering, and all sorts of illegal activities. It is in this context that the SEC should evaluate the latest wave of Bitcoin ETF applications,” the specialist noted.

According to two letters from Better Markets, the Commission should continue to stay conservative.

In filings, many firms, including Invesco, VanEck, 21Shares, WisdomTree, and Fidelity, have chosen Coinbase as their joint control partner. Representatives from Better Markets emphasized that only a small part of the global spot trading of crypto assets is carried out by a US company.

The non-profit organization called bitcoin itself “a commodity that is actively manipulated through “laundering trade” [wash trading]”. At the same time, Coinbase is not registered with the SEC or CFTCwhile having legal problems.

Established in the aftermath of the 2008 financial crisis, Better Markets is focused on reforming financial markets.

In June, BlackRock filed an application to launch an exchange-traded fund based on digital gold. Next, Galaxy did the same together with the investment company Invesco, which manages WisdomTree assets, as well as Valkyrie Investments and Fidelity Investments. Since April, the regulator has been considering a similar request from ARK Invest and 21Shares.

So far, the SEC has not given any approval to launch spot bitcoin ETFs. The Commission made an exception for similar products based on futures for the first cryptocurrency from ProShares and Valkyrie Investments.

Bernstein experts and former SEC chairman Jay Clayton rated the chances of a new wave of applicants as high.

Earlier, Galaxy Digital CEO Mike Novogratz announced the expected date for the approval of the spot bitcoin ETF.

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