SEC Chair Gary Gensler on Bitcoin ETFs
The U.S. Securities and Exchange Commission (SEC) is currently reviewing between eight and 10 applications for spot bitcoin exchange-traded funds (ETFs), according to SEC Chairman Gary Gensler. While the SEC has approved ETFs linked to bitcoin futures contracts, it has not yet approved a spot bitcoin ETF.
Bitcoin ETF Decisions
Gensler stated that the spot bitcoin ETF applications will potentially come before the five-member commission for consideration. He did not provide a timeline for the decisions, as each application has different filing dates.
Currently, there are 12 spot bitcoin ETF applications pending review at the SEC, including Grayscale’s application to convert its bitcoin trust into a spot bitcoin ETF. Other applicants include ARK Investment Management, Blackrock, Bitwise, Wisdomtree, Fidelity, Vaneck, and Invesco. The SEC has delayed decisions on all spot Bitcoin ETFs.
Speculation and Expectations
The price of bitcoin recently increased amid speculation that Blackrock is nearing the launch of its own bitcoin ETF. Additionally, the U.S. Court of Appeals for the D.C. Circuit ordered the SEC to reconsider Grayscale Investments’ spot bitcoin ETF application. Some analysts predict that the SEC may approve multiple spot bitcoin ETFs simultaneously.
Gensler’s Views on Cryptocurrency Regulation
In a recent speech at the 2023 Securities Enforcement Forum, Gensler emphasized that investors and issuers in the crypto asset securities markets deserve the same protections as those in traditional securities markets. He believes that most crypto assets meet the investment contract test and should be subject to securities laws. Gensler has previously stated that all crypto tokens except bitcoin are considered securities.
Hot Take: Gensler’s Regulatory Approach
Gary Gensler’s regulatory approach to the crypto industry, characterized by litigation and a focus on investor protection, has faced criticism. While some argue that it is necessary to combat fraud and misconduct in the field, others believe that it stifles innovation and hampers the growth of the industry. As the SEC continues to review spot bitcoin ETF applications, the decision on their approval or rejection will have significant implications for the future of cryptocurrency investments.
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