SEC commissioner Crenshaw still skeptical of approved bitcoin ETFs
On January 10, the SEC finally approved 11 spot bitcoin ETFs after a decade of applications. However, despite the approval, the funds still attracted criticism, even from senior figures within the Commission. Indeed, Commissioner Caroline Crenshaw was a particularly loud dissenting voice. Her criticism focused on fraudulent information from crypto exchanges, wash trading, and illogical reasoning by ETF sponsors. Crenshaw called the SEC’s proposed rule changes “unsound and ahistorical” and also claimed that these rule changes will weaken the SEC’s ability to protect investors. She cited rampant fraud and manipulation in bitcoin spot markets, pointing out that wash trading in bitcoin markets could account for as much as 77.9% of the trading volume on unregulated exchanges. Crenshaw also called out illogical reasoning by ETF sponsors, including their assertion that bitcoin futures markets track the price of spot bitcoin. She noted that this is an obvious causation/correlation falla...