Better Markets, a nonprofit devoted to advancing the public interest in financial markets, has taken a daring step by harshly criticizing the approval of Spot Ethereum ETFs. The U.S. Securities and Exchange Commission (SEC), for authorizing the Ethereum ETFs, was criticized for approving them. Benjamin Schiffrin, Director of Securities Policy at Better Markets, was unequivocal in his criticism.
Better Markets Disapproves of Ethereum ETF Approval
Schiffrin called the decision a “historic mistake” that will only worsen investors’ risks in the erratic cryptocurrency market. Furthermore, just after Schiffrin’s statement, the SEC recently approved proposed rule changes that would have allowed national securities exchanges to list and trade shares of Spot Ether ETPs.
The financial community is deeply concerned about the decision. These worries are justified by the most recent verdicts and charges about financial crimes in the cryptocurrency industry. Schiffrin bemoaned, “Today, the SEC doubled down on its historic mistake of approving spot bitcoin ETPs.”
Furthermore, he emphasized the risks of investing in assets like Ethereum’s native currency, ETH. Moreover, he cited previous instances as proof of the inherent dangers connected to Spot Ethereum ETFs. He brought attention to the indictment of two brothers who stole millions of dollars worth of cryptocurrencies by abusing the Ethereum blockchain’s integrity.
Schiffrin clarified, “We outlined why the proposed rule changes to list and trade shares in spot ether ETPs should have been rejected in our original and supplemental comment letters.” He underlined the asset’s volatility in ether and the Ethereum network’s susceptibility to deceit and manipulation. He also cautioned that approving Spot Ether ETPs would put ordinary investors at risk and jeopardize the stability of the larger financial system.
A Remark Against C.Z. & Sam Bankman-Fried
Moreover, the participation of notable individuals such as Changpeng Zhao (C.Z.), the founder of Binance, and Sam Bankman-Fried, the inventor of FTX, emphasizes the issues brought forth by Better Markets. Both have had legal problems in the past few months. Bankman-Fried was found guilty of embezzling billions of dollars, while C.Z. admitted to the money laundering charge.
As per the court decisions, Bankman-Fried was sentenced to 64 months in jail. While C.Z. of Binance was sentenced to four months in prison, it could be clearer if he has begun serving his time. According to Better Markets, Ethereum ETFs may present comparable risks to the financial system observed in the instances above.
Better Markets has drawn criticism for making this claim, though. The host of ETF Prime, Nate Geraci, emphasized the remarkable change in the SEC and the Biden administration’s position on cryptocurrencies. He said that better Markets might need to be made aware of the sudden change. “Better Markets didn’t get the memo from D.C. to shift stance on crypto,” Geraci said mockingly.
