Crypto Veteran Sounds Alarm on Bitcoin ETF Approval, Cites Multiple Issues

The prospect of a Bitcoin exchange-traded fund (ETF) being approved by U.S. regulators is far from certain according to crypto industry veteran Alex Becker. In a recent tweet, Becker outlined multiple issues which could derail Bitcoin ETF hopes.

Becker pointed to several examples of alleged market manipulation and misconduct undermining the narrative of Bitcoin as a mature asset class ready for an ETF. These include:

  • Crypto exchange FTX and its CEO SBF accused of manipulating Bitcoin prices through high-leverage derivatives trades.
  • Whale traders moving markets through tweets and rumors, as seen with recent ETF ticker speculation.
  • The dominant role of Tether’s USDT stablecoin, which lacks full USD reserves according to critics.
  • Cryptocurrency exchanges frequently accused of abusive practices against retail traders.

Per Becker, these systemic flaws in the current Bitcoin market make it “highly manipulated” by definition. As such, regulators like the SEC could deem Bitcoin an inappropriate underlying asset for an ETF product. The SEC holds a duty to protect investors, including scrutinizing manipulation risk.

Crypto advocates often tout a Bitcoin ETF as a watershed moment for mass adoption. But Becker contends that the deep-seated issues plaguing the market could remain roadblocks. Unlike traditional ETF assets like stocks or bonds, Bitcoin lacks both regulatory oversight and price discovery free from potential manipulation.

For Becker, these concerns cast doubt on whether Bitcoin or other cryptocurrencies are yet ready for the mainstream ETF treatment. Until structural problems are addressed, crypto ETF approval may remain elusive despite industry optimism.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Rene Peters
Rene Peters

Rene Peters is editor-in-chief of CaptainAltcoin and is responsible for editorial planning and business development. After his training as an accountant, he studied diplomacy and economics and held various positions in one of the management consultancies and in couple of digital marketing agencies. He is particularly interested in the long-term implications of blockchain technology for politics, society and the economy.

CaptainAltcoin
Logo