Better Markets: Approving Spot Crypto ETFs Would Be a Huge Mistake

The non-profit organization Better Markets has published an open letter to the US Securities and Exchange Commission (SEC), which calls for disapproval of the launch of spot Bitcoin ETFs.

The letter was signed by Better Markets CEO Dennis M. Kelleher). In the document, Kelleher and Better Markets analysts write to SEC Secretary Vanessa Countryman and say that approval of spot cryptocurrency ETFs could lead to significant risks for investors.

“We are sending this letter with additional comment (which Better Markets rarely does) because approving spot cryptocurrency ETFs would be a serious, if not historic, mistake that would likely result in enormous harm to investors,” the organization wrote..

Better Markets analysts believe that spot Bitcoin ETFs will expose investors to potential fraud, a problem that is intrinsically linked to the cryptocurrency industry.. In addition, the approval of such funds will allow crypto firms to claim that cryptocurrencies are approved by the US government, write Kelleher and company.

At the same time, Bloomberg analysts believe that the approval of spot cryptocurrency ETFs in January is extremely likely, but there is still a small chance that the SEC will reject applications for such funds in order to gain additional time to develop legal regulations for cryptocurrency ETFs.