SEC Approves Bitcoin ETFs
The Securities and Exchange Commission (SEC) has recently given its approval to several Bitcoin Exchange-Traded Funds (ETFs), marking a significant moment for the crypto industry.
However, the excitement surrounding this development was tempered by SEC Chair Gary Gensler’s critical view of Bitcoin and cryptocurrencies in general.
Cathie Wood’s Disappointment
Cathie Wood of Ark Investment Management LLC expressed her disappointment at Gensler’s negative comments, stating that skepticism is common in industries driven by disruptive innovation.
โHe just denigrated the whole crypto space. I couldnโt believe it. This is par for the course in disruptive innovation.โ
Wood emphasized that there are many curious individuals interested in the crypto industry despite Gensler’s stance.
Approval of Bitcoin ETFs
The SEC has approved 11 Bitcoin ETFs in the United States, providing an opportunity for investors to enter the cryptocurrency market without directly purchasing Bitcoin. These ETFs will be available on domestic securities exchanges such as NYSE, Nasdaq, and CBOE.
Cathie Wood’s ARK 21Shares Bitcoin ETF, developed with Swiss firm 21Shares, is one of the approved proposals. Other proposals from Grayscale, Bitwise, Hashdex, BlackRock, Valkyrie, Invesco/Galaxy, VanEck, WisdomTree, Fidelity, and Franklin Templeton have also been successful.
Gensler’s Stance on Digital Assets
Despite approving spot Bitcoin ETFs through a narrow vote, Gensler reiterated that the SEC does not endorse digital assets. This decision comes after expectations of product approval and a legal setback the SEC faced in a related case.
Commissioner Pierce’s Statement
SEC Commissioner Hester Pierce, known as “Crypto Mom,” described the approval of 11 spot Bitcoin ETFs as the end of a significant saga. She criticized the SEC for its past inaction, which forced retail investors to use less efficient methods to gain exposure to Bitcoin.
Pierce also pointed out that the SEC’s explanation for its change of stance was weak and failed to acknowledge any past shortcomings.
Hot Take: Conclusion of an Era
The recent approval of Bitcoin ETFs by the SEC marks a milestone for the crypto industry. While some industry figures, like Cathie Wood, have expressed disappointment at SEC Chair Gary Gensler’s negative comments, this development opens doors for investors who prefer indirect exposure to Bitcoin. The approval of multiple proposals demonstrates growing interest and recognition of cryptocurrencies. However, Gensler’s reiterated stance against digital assets highlights ongoing regulatory challenges. Overall, the approval of Bitcoin ETFs signals progress and a shift towards mainstream acceptance in the crypto space.
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