Bitcoin ETFs Enable the ‘Mass Marketing’ of a Worthless Asset to Main Street Americans, Says Better Markets

An impartial nonprofit group stated the U.S. Securities and Exchange Commission’s approval of spot bitcoin exchange-traded funds has enabled the “mass advertising of a recognized nugatory, unstable, and fraud-filled monetary product to Main Street Americans.” The group claimed that bitcoin proponents will seemingly painting the approval as some form of authorities endorsement of cryptocurrencies.

Large Portion Bitcoin Trading Allegedly Tied to Wash Trades

Better Markets, an American nonprofit group dedicated to selling public curiosity in monetary markets and the economic system, has expressed dismay on the U.S. Securities and Exchange Commission (SEC)’s approval of the spot bitcoin exchange-traded fund (ETF). The group charged that as an alternative of defending crypto buyers, the SEC has now enabled the “mass advertising of a recognized nugatory, unstable, and fraud-filled monetary product to Main Street Americans.”

In its Jan. 11, 2024, press statement, Better Markets insisted that the regulation doesn’t help the U.S. regulator’s approval of ETF purposes. It additionally attacked claims {that a} U.S. court docket ruling in favor of the crypto asset supervisor Grayscale had pressured the SEC’s hand. As beforehand reported by Bitcoin.com News in August 2023, the U.S. court docket dominated that the SEC’s rejection of Grayscale’s spot Bitcoin ETF was “arbitrary and capricious.”

However, in its fiery assertion, Better Markets assailed recommendations that the SEC’s defeat meant it needed to approve the ETFs.

“The court docket in Grayscale merely stated that the SEC did not sufficiently clarify its prior rejection. The SEC may — and may have — rejected the ETF purposes and higher detailed why it did so, importantly together with a exhibiting that ‘as a lot as 77.5% of the full buying and selling quantity on unregulated exchanges was resulting from wash buying and selling’ and as a lot as 95% of Bitcoin buying and selling ‘may very well be resulting from wash buying and selling,’” the nonprofit group stated.

The nonprofit group additionally claimed that BTC proponents will seemingly painting the approval as some form of authorities endorsement of cryptocurrencies. Turning its give attention to BTC and cryptocurrencies generally, the group stated the highest crypto asset stays a “nugatory monetary product” that’s solely favored by speculators, gamblers, and criminals.

According to an announcement by Better Markets, no regulatory physique has been capable of successfully police the crypto business. The assertion additionally slammed Rostin Behnam, the chairman of the Commodities Futures Trading Commission (CFTC), who it stated had turned out to be “little greater than a biased crypto cheerleader.”

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