Despite Backlash, Gensler Greenlights Bitcoin ETFs

• Spot Bitcoin ETF Finally a Reality with SEC Approval
• SEC's Stance on Cryptocurrency Industry
• Gensler's Warning to Investors
• Opposing Views Within SEC
• Inclusion of Major Financial Providers

Spot Bitcoin ETF Finally a Reality with SEC Approval

The U.S. Securities and Exchange Commission (SEC) has given the green light for the first-ever spot Bitcoin$42,260 -0.64% (BTC) Exchange-Traded Fund (ETF). Notably, Gary Gensler, the SEC chairman, was one of the three committee members who approved the development. Other members who voted in favor of the filings were commissioners Hester Peirce and Mark Uyeda, as the commission votes notice on the SEC website reveals.

SEC's Stance on Cryptocurrency Industry

While Hester Peirce is a known supporter of the cryptocurrency industry, Gary Gensler has maintained a public skepticism towards the market. He cites customer protection and fraud as major risks associated with the industry. Following the recent approvals, Gensler reinforced the SEC's wary view on Bitcoin. He stated that the regulator was left with no option other than approving over 12 Bitcoin ETFs after a court defeat regarding the rejection of Grayscale's listings in 2022.

Gensler's Warning to Investors

We did not approve or endorse Bitcoin, stated Gensler, further advising investors to stay wary of the numerous risks associated with Bitcoin and crypto-linked products.

Opposing Views Within SEC

Commissioner Caroline Crenshaw, who voted against the filings, expressed concern over the approved ETFs. In her opinion, this decision could potentially jeopardize investor protection, leading the SEC onto a perilous path.

Inclusion of Major Financial Providers

Among the approved providers are financial powerhouses such as BlackRock (BLK) and Fidelity. Additionally, Grayscale's popular Bitcoin Trust (GBTC) has also been promoted to ETF status. The fees on these products vary, with some offering a zero-fee period for the first few months (such as ARK, Bitwise, and Invesco), while others, such as Grayscale, propose as high as 1.5%.

Edited by Jonathan Stoker