US non-profit organization criticizes Bitcoin spot ETF again: "Worthless gambling chips"

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US non-profit organization criticizes Bitcoin spot ETF again: "Worthless gambling chips"

The U.S. non-profit organization Better Markets, dedicated to protecting the rights of investors and consumers, has once again written to the U.S. Securities and Exchange Commission (SEC), criticizing Bitcoin spot ETFs for the second time.

Concerns from Better Markets

According to a document sent by Better Markets to the SEC, its founder and CEO Dennis M. Kelleher strongly criticized Bitcoin spot ETFs in the letter, mentioning:

  • High volatility, highly speculative, financially unproductive products for society.

  • Poses risks to American investors and retirees.

  • Potential existence of false trading, high concentration of holders.

  • Monitoring sharing agreements are useless, difficult to prevent manipulation.

He believes that the price of Bitcoin can remain stable for a long time and experience sharp fluctuations at specific periods, indicating risks to the public, as shown below.

Bitcoin was only $77 in 2013

What is Better Markets?

Better Markets is a U.S. nonprofit organization dedicated to protecting the rights of investors and consumers, promoting financial reform and regulation to enhance transparency and fairness in financial markets.

FTX had previously attempted to donate $1 million to Better Markets in order to gain approval from the CFTC for the securities clearing model proposed by SBF at the time.

However, Dennis M. Kelleher firmly rejected this donation and urged the CFTC to reject SBF's proposal.

CFTC praises FTX's new proposal, digital assets and smart contracts could replace traditional futures commission merchants (FCMs)

This is not the first time Better Markets has criticized Bitcoin spot ETFs. Stephen Hall, Legal Director and Securities Expert at Better Markets, submitted comments to the SEC last August, listing the dark history of various industries in the crypto sector.

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