The Securities and Exchange Commission (SEC) has recently been warned by Dennis Kelleher, the president and CEO of Better Markets, against approving a Bitcoin exchange-traded fund (ETF). Kelleher argued that such a move could create a “massive bubble” in the cryptocurrency market, which would be detrimental to investors.

Kelleher’s warning comes as the SEC is considering approving a Bitcoin ETF proposed by VanEck and SolidX. The ETF would allow investors to buy and sell Bitcoin without having to purchase the cryptocurrency directly. This could make it easier for investors to gain exposure to Bitcoin without having to go through the complicated process of buying and storing it.

Kelleher believes that approving a Bitcoin ETF could lead to a surge in demand for the cryptocurrency, which could cause prices to skyrocket. He argued that this could create a “massive bubble” in the market, which would be dangerous for investors who may not understand the risks associated with investing in cryptocurrencies. He also warned that the SEC should be wary of approving a Bitcoin ETF, as it could be used by market manipulators to manipulate prices.

Kelleher’s warning is just one of many that have been issued by financial experts and regulators in recent months. Many have expressed concern that approving a Bitcoin ETF could lead to a speculative bubble in the cryptocurrency market, which could be damaging for investors. The SEC has yet to make a decision on the proposed ETF, but it is clear that there are many risks associated with such a move.

It is important for investors to understand the risks associated with investing in cryptocurrencies, including the potential for market manipulation and price bubbles. The SEC should take Kelleher’s warning seriously and consider all of the potential risks before making a decision on the proposed Bitcoin ETF.