John Reed Stark, who used to work at the US Securities and Exchange Commission (SEC), is now even more doubtful about a Bitcoin exchange-traded fund (ETF) getting approved. He says the chances are very low.
On August 19, Stark shared his thoughts on X (formerly called Twitter), saying that he believes cryptocurrency is full of scams and deception.
He specifically talks about a report from August 2, which suggests that bots on the X platform were used to raise the prices of various cryptocurrencies, including ones traded by Alameda Research, which is connected to FTX. This happened just before the collapse of these coins.
The report also says that even just Elon Musk, the person in charge of Tesla and SpaceX, mentioning certain cryptocurrencies caused their prices to go up by about 50% in just one day.
Stark uses this information to support his idea that there’s not enough honesty in the crypto world right now.
He says that it’s really hard to determine the true value of these digital things based on math and computations. There are no real basics like balance sheets, cash flow, products, or good management. He also points out that there aren’t enough rules and regulations in crypto, which means there’s not enough protection for people who use it.
Stark has talked before about how the SEC might change its thinking about Bitcoin ETFs after the US Election Day in 2024, which is on November 5th.
Bitcoin ETF Advances Halt as Ethereum Futures Approval Looms:
Many investment companies are eagerly waiting to see what the SEC decides about Bitcoin ETF applications.
This has been a big topic in the industry, and people who watch the market will be paying close attention to see how the SEC’s choices might affect the price of Bitcoin.
One of the companies waiting for a decision is BlackRock, which is the biggest manager of assets in the world.
Even though BlackRock has been good at launching ETFs before and many people think they have a good chance of getting approved, the SEC hasn’t given a clear answer yet.
Cathie Wood, who runs ARK Invest, is also waiting to hear about her company’s Bitcoin ETF application. She thinks the SEC will probably give the green light to several ETFs at the same time. She said,
“Because most of these will be pretty much the same, the decision will come down to how they talk about and share their ideas.”
Ethereum ETF Approval Could Happen Before Bitcoin’s:
Recent news suggests that the SEC might soon approve the first Ethereum futures ETFs.
People who know about this say the SEC probably won’t say no to these products. They also think that by October, the SEC might allow many companies to launch these ETFs, even though the SEC hasn’t said anything officially yet.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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