- Jim Cramer has asked SEC Chair Gary Gensler if there should be ETFs based on a number of memecoins and altcoins, including the Solana-based memecoin BONK.
- Cramer’s reasoning seems to be that if a cryptocurrency has a large trading volume it should have an ETF.
- Gensler’s response was unenthusiastic, saying crypto is far too rife with fraud and manipulation at the moment to create ETFs based on coins like BONK.
Finally someone is stepping up to the plate and asking the man in charge the questions we all want to know the answers to. That’s right, CNBC’s Jim Cramer has grilled SEC Chair Gary Gensler on when we’re going to see a BONK exchange-traded fund (ETF).
Perhaps unsurprisingly, Gensler’s answer wasn’t “Any day now Jim!” Instead the SEC Chair raised general concerns about the unregulated nature of the crypto market and suggested we wont be seeing any BONK ETFs until crypto projects and exchanges are subject to the same kind of regulation we see in traditional financial markets.
Related: Solana, Bonk, WIF Make Record Gains, Lead Rally As Major Coins Stall
I Would Think BONK Is a Natural, Says Cramer
During the interview which aired Wednesday on CNBC, Cramer reeled off a list of tokens which he claimed had traded in the millions of dollars earlier that day and suggested to Gensler that based on their trade volume they should be offered in ETF form:
Ok, now…Polkadot, Cordana (sic), Cosmos, Immutable, Ronin, Bonk, Osmosis, SushiSwap, My Neighbor Alice, have all traded millions — I’m talking about MILLIONS — of dollars this very morning. Should we have a SushiSwap, maybe an ETF?
Jim CramerCramer added that he thought BONK in particular would be the perfect ETF candidate:
I would think that Bonk is a natural. And Osmosis. These are trading millions…Gary these are millions of dollars these things have traded. Shouldn’t we have some sort of product?
Jim CramerGensler: A BONK ETF? In This Market?
Gensler, looking a little amused on the left end of the desk, basically ignored the question and instead spoke about the problems with the crypto market generally:
Right now, without prejudging anyone, these tokens — whether they’re the ones Jim just listed or other tokens — have not given you the disclosure that you not only need to make your investment decisions, but also that are required by the law. It’s a basic concept in our securities market.
Gary Gensler, SEC ChairGensler went on to single out crypto exchanges as a particular point of weakness within crypto markets, saying they’re basically illegal operations that are rife with fraud and market manipulation:
Exchanges, like here — this floor of the New York Stock Exchange — get properly regulated to protect against fraud and manipulation, and they don’t trade against you. And these crypto exchanges Jim, are doing things we would never allow this New York Stock Exchange to do.
Gary Gensler, SEC ChairRelated: SEC Chief Gary Gensler Claims BTC ‘Not That Decentralised’ Says It’s a Mere Accounting Ledger
Although Gensler’s answer sounded quite negative, it does suggest that when crypto markets are properly regulated we may be more likely to see more ETFs based on a much wider range of cryptocurrencies.
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