SEC receives letter requesting rejection of all Bitcoin ETF applications
SEC receives letter requesting rejection of all Bitcoin ETF applications
Better Markets, a non-profit organization, has appealed to the Securities and Exchange Commission (SEC) to prohibit the introduction of spot exchange-traded funds based on Bitcoin.
The crypto watchdog urged the SEC to consider the potential risks to retail investors posed by Bitcoin ETFs and reject all applications received so far, Coincu reported.
The SEC has recently received a large number of applications from various investment funds, including well-known ones such as BlackRock, VanEck, Invesco, Fidelity Investments, WisdomTree, ARK Invest and 21Shares.
Meanwhile, Stephen Hall, Legal Director of Better Markets, points out to the regulator that the crypto industry has faced multiple scandals, bankruptcies, and lawsuits and suffered losses of more than $2 trillion last year.
The SEC has previously rejected such filings, but the companies have submitted amended and supplemental documents at the regulator's request that include a joint oversight agreement or details of that mechanism.
The crypto watchdog is counting on the SEC's crucial role in preventing fraud and protecting the interests of investors, which is why it has filed two comment letters on eight spot Bitcoin ETF applications. Even though the SEC has not yet approved any Bitcoin ETFs, Chairman Gary Gensler has already stated that he is extremely concerned about the risk of fraudulent activity in these products that could harm investors.
It is worth noting that crypto investors are hoping that the introduction of a spot Bitcoin ETF will lead to an increase in institutional investment and, consequently, a rise in the value of the cryptocurrency. Moreover, following the Bitcoin ETF filing, the price of the major cryptocurrency experienced a massive boost and rose to $30,000.
Mike Novogratz, CEO of Galaxy Digital, stated that the launch of the Bitcoin ETF will definitely happen within the next four to six months. He cited insider sources who said that it was just a matter of time.
Other news: GO Markets has partnered with Options Technology.
