Max Keiser speculates that the SEC’s refusal of a spot Bitcoin ETF may be due to corruption.

October 2, 2022

Max Keiser speculates that the SEC's refusal of a spot Bitcoin ETF may be due to corruption.

Max Keiser speculates that the SEC’s refusal of a spot Bitcoin ETF may be due to corruption.

Max Keiser, a proponent of bitcoin, commented on the lack of a BTC Exchange-Traded Fund (ETF) in the United States, calling it “unconscionable” for the Securities and Exchange Commission (SEC) to keep rejecting applications. The first U.S. short Bitcoin-linked ETF, known as the ProShares Short Bitcoin Strategy ETF and trading under the ticker BITI, was launched by ProShares on June 20. According to Michael L. Sapir, CEO of ProShares, recent market volatility demonstrated that Bitcoin’s value might decrease. Through a conventional brokerage account, BITI enables U.S. investors to get short exposure.

A Bitcoin-linked futures ETF with the ticker BITO was initially introduced by ProShares in October 2021. Since then, comparable products have been introduced by Valkyrie, VanEck, GlobalX, and Teucrium. Futures ETFs might be different from the spot price since they are based on futures contracts, which are financial derivative transactions based on an obligation to purchase or sell at a fixed future date and price. Instead of being resolved by physical delivery, futures are often paid through cash transfers of the underlying asset at contract expiration. Futures are said to generally benefit speculators as a result. Analyst Will Clemente said the SEC has approved short and futures ETFs, a Grayscale trust, and a pension vehicle but not a spot ETF.

Keiser claimed that futures ETFs are “notoriously bad” and “nearly never work” in an interview with Anthony Pompliano on the Best Business Show. He went on to label the SEC’s reasoning for rejecting spot ETF products as “fallacious.” Keiser specifically mentioned the SEC’s claim that Bitcoin lacks meaningful price discovery. The SEC also provided a list of further justifications. For instance, the agency said in a report from November 2021 that VanEck had not followed the Exchange Act’s and the Commission’s Rules of Practice’s requirements. As a result, investors lacked safeguards against manipulation and fraud. Keiser implied that the SEC’s actions are inconsistent with an organisation that seeks fair and open markets by asking who the agency represents.


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