Gensler's Stand on Spot Bitcoin ETF Approvals: An Insight

Jonathan Stoker Jan 11, 2024, 00:55am 244 views

Gensler's Stand on Spot Bitcoin ETF Approvals: An Insight

Spot Bitcoin ETF Applications Gain SEC Approval

The Security and Exchange Commission (SEC) has granted a milestone sanction for all Spot BitcoinBitcoin$42,260 -0.64% ETF applications. This signifies the first instance that Bitcoin exchange-traded funds will be available on the trading markets.

Statement from SEC Chair Gary Gensler

In a public declaration, SEC Chair Gary Gensler referred to the previous court directives overturning the SEC's conclusion on Spot Bitcoin ETF applications. He stressed that the SEC has given its consent - albeit with some hesitancy - understanding it as a significant stride in finance.

A tweet disseminated news of the approval, stating: While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin.

SEC's View on the Decision

Gensler elucidated that the decision to approve these applications should not be interpreted as the SEC supporting Bitcoin. Rather, he stated that the approval should not be seen as an indication of the Commission's readiness to facilitate listing standards for crypto asset securities.

The decision does not communicate any consensus on the Commission's views regarding the status of other crypto assets under the federal securities laws, or about non-compliant behaviour of some crypto asset market constituents with the federal securities laws.

Gensler's Continued Criticism of Bitcoin ETF and Bitcoin

The approval granted to Spot Bitcoin ETFs brings added security to Bitcoin and cryptocurrency investors. This decision paves the way for asset management companies such as BlackRock, Grayscale, and Valkyrie to lead their unique Bitcoin-focused exchange-traded funds.

Such regulated exchanges must enforce rules designed to prevent fraud and manipulation, and we will monitor them closely to ensure adherence, Gensler affirmed.

Final Thoughts

Gensler concluded by reconfirming his lack of support for Bitcoin and the ultimate capacity of these ETFs. While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin. Investors are advised to remain wary about the numerous risks associated with bitcoin and products whose value is interlinked with crypto, he warned.

Edited by Jonathan Stoker

How do you like the article?

Join the discussion on

You may also like

Advertisement

Articles in same category

Advertisement

Coins in same category

Advertisement

Join our community

Help moderate our articles, rate content and show your support!

We want you to be part of the first automated crypto-magazine.

Join us today