Bitcoin futures and spot ETFs have been rejected for countless years in the past, but they have now been approved under the tenure of SEC Chairman Gary Gensler, who also cast the crucial approving vote. However, he acknowledged that this is the most viable solution in the wake of the Grayscale case’s failure.
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Bitcoin spot ETF approved by a 3:2 vote, with Gary Gensler’s support
Gary Gensler: Not endorsing Bitcoin
Commissioner Caroline Crenshaw opposes and expresses concerns about the future
Bitcoin spot ETF approved by a 3:2 vote, with Gary Gensler’s support
According to a tweet from Fox Business reporter Eleanor Tereett, there was indeed an internal vote within the SEC to approve the Bitcoin spot ETF, and Chairman Gensler also cast a supporting vote.
Comments on the tweet expressed surprise at Gary Gensler’s decisive vote.
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Gary Gensler: Not endorsing Bitcoin
Gary Gensler
In a statement, Gensler admitted that the approval of the Bitcoin spot ETF was forced due to the failure of the Grayscale case, emphasizing that the SEC always operates within legal frameworks.
He pointed out that since 2018, during former Chairman Jay Clayton’s tenure, the SEC has rejected over 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. This led to a sudden change in the situation.
Considering these circumstances, as well as the more thorough discussions on product structure, Gensler believed that approving the Bitcoin spot ETF was the most viable solution.
However, he still highlighted that compared to non-security commodity ETPs, such as precious metal ETPs, Bitcoin is still characterized by speculation, high volatility, and its use in illegal activities such as money laundering, ransomware, and terrorist financing.
Gensler emphasized:
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, while Bitcoin price underperforms Ethereum
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Commissioner Caroline Crenshaw expresses deep concerns about the future
Caroline Crenshaw
Crenshaw also criticized the approval of the Bitcoin ETF in her statement.
She expressed concerns about the approval, fearing that Bitcoin ETFs would flood into American families’ retirement accounts, leaving them unable to bear the financial losses caused by the widespread fraud and manipulation in the Bitcoin market.
She believed that the supervisory sharing agreement signed by relevant parties is ineffective, 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 significant volatility as a result. She stated:
When new, more speculative, and higher-risk products seek listing, a group of wealthy individuals always criticize the SEC for sticking to the rules. I am concerned that what we are preparing for today (approving the ETF) will ultimately result in painful consequences for the investors we are responsible for protecting.
Commissioner Jaime Lizárraga, another dissenting member, did not issue a statement.
Gary Gensler
SEC
Further Reading
SEC officially approves Bitcoin spot ETF, while Bitcoin price underperforms Ethereum
SEC creates market turmoil with fake tweet, Gary Gensler’s tweet gets blockchainized, Senator: Congress needs an explanation