The open letter, signed by Better Markets CEO Dennis M. Kelleher, highlights the potential risks that approving spot cryptocurrency ETFs could pose to investors. This rare act of voicing concerns emphasizes the seriousness of the matter at hand.
“With utmost urgency, we are conveying our apprehensions (a deviation from our usual practice) because authorizing spot cryptocurrency ETFs would be an egregious, even historic, blunder that could result in colossal financial losses for investors,” the letter stated.
The experts at Better Markets firmly believe that granting approval to spot Bitcoin ETFs would expose investors to a multitude of potential fraudulent activities, magnifying the inherent risks within the cryptocurrency industry. Moreover, by allowing such funds to operate, it would inadvertently create an illusion that cryptocurrencies have obtained the seal of approval from the US government, according to Kelleher and his team.
Differing from Better Markets’ stance, Bloomberg analysts appear more optimistic about the likelihood of the SEC approving spot cryptocurrency ETFs in January. However, they acknowledge the slim possibility that the commission may reject the applications for such funds in order to afford themselves more time to establish robust legal regulations surrounding cryptocurrency ETFs.