Despite approving 11 spot Bitcoin exchange-traded funds (ETF) today, Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC) and a prominent crypto critic, explicitly denies approving or endorsing Bitcoin.
“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin,” it was stated.
Gary Gensler Warns Investors Over Bitcoin, As Bitcoin ETF Receives Approval
In a recent statement, Gary Gensler provided a detailed overview of the SEC’s approval process. In particularly, for the 11 spot Bitcoin ETF applications from major US asset management firms that the SEC gave the nod to, today. He emphasizes that the greenlighting of these applications does not equate to the SEC endorsing Bitcoin.
“It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”
He further states that while investors have already been able to purchase Bitcoin through crypto exchanges and other means, the approval of spot Bitcoin ETFs now provides additional protection for investors.
Gensler explains that sponsors of bitcoin ETFs will be required to provide full, fair, and truthful disclosure about the products.
Furthermore, investors in any bitcoin ETF that is listed and traded will benefit “from the disclosure included in public registration statements and required periodic filings.”
Gensler further states that the SEC has been overseeing ETFs and related products for almost two decades. He reassures investors that with the regulator now overseeing this product. Additionally, investors can have piece of mind knowing that their funds will have protection by more stringent laws.
“Since 2004, this agency has had experience overseeing spot non-security commodity ETPs, such as those holding certain precious metals. That experience will be valuable in our oversight of spot bitcoin ETP trading.”
Read more: How To Prepare for a BitcoinETF: A Step-by-Step Approach
SEC Recent Approval of Spot Bitcoin ETFs
On January 10, BeInCrypto reported that the SEC has approved 11 spot Bitcoin ETF applications from major asset management firms.
The SEC’s approval of the spot Bitcoin ETF represents a major shift in the regulatory climate.
Furthermore, it signals a growing acceptance of cryptocurrencies within traditional financial systems.
The ETF allows investors to gain exposure to Bitcoin without the complexities of direct ownership, such as managing cryptographic keys. This development can potentially attract a broader range of investors, including those who prefer conventional investment vehicles.
Read more: Who Owns the Most Bitcoin in 2024?
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