Bitcoin spot ETF to be reviewed soon, securities expert: Coinbase's monitoring sharing agreement is completely useless.

Previously, several fund institutions have applied for Bitcoin spot ETFs with the SEC, following the format of BlackRock's documents, and have signed monitoring sharing agreements with Coinbase. However, securities experts from the U.S. non-profit organization Better Markets believe that such monitoring agreements are completely useless in preventing market manipulation.

Securities Expert Criticizes Bitcoin Spot ETF

Better Markets' Legal Director and securities expert Stephen Hall has commented on the "Bitcoin Spot ETF applications" submitted by eight applying institutions to the SEC. Link.

Note: Better Markets is a U.S. nonprofit organization dedicated to protecting the rights of investors and consumers, advocating for financial reform and regulation to promote transparency and fairness in financial markets.

I. "Brilliant Records" in the Cryptocurrency Industry

He pointed out that the cryptocurrency industry has suffered $2 trillion in losses, numerous enforcement actions, bankruptcy reorganizations, and dozens of civil and criminal lawsuits related to fraud and theft.

II. Primary Beneficiaries in Cryptocurrency: Criminals

The primary beneficiaries in the cryptocurrency boom are criminals who use cryptocurrencies for money laundering, as payment mediums for ransomware, and various illicit activities.

III. Violation of the "Exchange Act"

Stephen Hall believes that the "Exchange Act" aims to prevent fraud, manipulation, and protect the interests of investors and the public, which the Bitcoin Spot ETF fails to meet.

IV. Bitcoin Spot Market Rife with Rampant Manipulation and False Trading

1. Highly centralized

2. History of falsifying and exaggerating trading volumes

3. Dependence on specific individuals and entities to operate the Bitcoin network

Stephen Hall points out that these signs indicate that the Bitcoin Spot ETF would bring unnecessary risks to investors and the public interest.

V. Coinbase's Monitoring Sharing Agreement is Useless

He believes that relying solely on monitoring from other trading markets is insufficient to address market manipulation. He cites the example that the Bitcoin futures market at the CME is not significant, similarly, only a small amount of global Bitcoin spot trading is done through Coinbase.

Relying on exchanges that represent a small portion of Bitcoin trading for market surveillance is of no value in detecting and preventing manipulation.

He also mentioned the ongoing lawsuit between Coinbase and the SEC.

Ark Bitcoin ETF Review Deadline Approaching, Expected to be Delayed

Previously, the approval timelines for various Bitcoin Spot ETFs were compiled, and the Ark 21Shares Bitcoin ETF will be the first and only one that the SEC must review on August 13th.

However, Cathie Wood now expects this timeline to be delayed and synchronized with other ETFs for approval.

Review: Compilation of various Bitcoin Spot ETFs: Early September may be critical for approval.