Approval of ETF Granted Despite Grayscale Lawsuit Defeat, Gary Gensler: No Endorsement of Bitcoin
Bitcoin futures and spot ETFs have been rejected for countless years, but they have now been approved under the chairmanship of SEC Chairman Gary Gensler, who also cast the crucial supporting vote. However, he admits that this is the most feasible solution in the face of the failure of the Grayscale case.
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Bitcoin spot ETF vote passes 3:2, Gary Gensler also supports
Gary Gensler: By no means endorsing Bitcoin
Opposing Commissioner Caroline Crenshaw: Deep concerns about the future
Bitcoin spot ETF vote passes 3:2, Gary Gensler also supports
According to a tweet from Fox Business reporter Eleanor Tereett, there was indeed a vote within the SEC on the approval of a Bitcoin spot ETF, and Chairman Gensler also cast a supporting vote.
In the comments section of the tweet, the crypto community expressed surprise at Gary Gensler’s crucial swing vote.
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Gary Gensler: By no means endorsing Bitcoin
Gary Gensler
In a statement, he acknowledged that the approval of the Bitcoin spot ETF was forced due to the failure of the Grayscale case, emphasizing that the SEC always acts in accordance with legal regulations.
He pointed out that from 2018 to the present under the tenure of former Chairman Jay Clayton, the SEC has rejected more than 20 proposals for spot Bitcoin exchange-traded products (ETPs) until the U.S. Court of Appeals for the District of Columbia Circuit found that the SEC failed to adequately explain the reasons for not approving the Grayscale ETP, resulting in a sudden change in the situation.
Given these circumstances, as well as more extensive discussions on the product structure, Gensler believes that approving a Bitcoin spot ETF is the most feasible solution.
However, he still points out that compared to non-security commodity ETPs (such as precious metal ETPs), Bitcoin is still rife with speculation, high volatility, and is used for illegal activities such as money laundering, ransomware, and terrorist financing.
Gensler emphasizes:
Although we have approved the listing and trading of certain spot Bitcoin ETPs today, we have not approved or endorsed Bitcoin. Investors should exercise caution regarding the numerous risks associated with Bitcoin-related products.
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SEC officially approves Bitcoin spot ETF, but Bitcoin price lags behind Ethereum at this time
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Opposing Commissioner Caroline Crenshaw: Deep concerns about the future
Caroline Crenshaw
Also in a statement, she strongly criticized the approval of a Bitcoin ETF.
She expressed deep concerns about the approval, fearing that Bitcoin ETFs will flood into American households’ retirement accounts, and these households will be unable to bear the financial losses caused by the widespread fraud and manipulation in the Bitcoin market.
She believes that the supervisory sharing agreements signed by the relevant parties are useless, as Bitcoin spot trading is global, and the SEC may not be able to effectively prevent market manipulation.
Crenshaw also cited the example of the SEC’s Twitter account being hacked on the 10th, pointing out that Bitcoin prices experienced drastic fluctuations as a result. She said:
When new, more speculative, higher-risk products seek listing, a group of wealthy people always criticize the SEC for sticking to the rules. I am concerned that we are preparing for tomorrow’s failure (by approving the ETF) and that the investors we are responsible for protecting will ultimately pay a painful price.
The other opposing commissioner, Jaime Lizárraga, did not issue a statement.
Gary Gensler
SEC
Further reading
SEC officially approves Bitcoin spot ETF, but Bitcoin price lags behind Ethereum at this time
SEC’s fake tweet causes market turmoil, Gary Gensler’s tweet gets chained, senator: Congress needs an explanation
