SEC Chair Gensler Warns Investors Despite Approving 11 Bitcoin ETFs
Summary:
Despite the SEC's recent approval of 11 spot Bitcoin ETFs, Chair Gary Gensler reasserts that this does not equate to an endorsement of Bitcoin due to its speculative nature and frequent use in illicit activities. He draws a distinction between Bitcoin and other commodities like gold and silver, which have practical uses. Gensler advises investors to remain cautious about investing in Bitcoin and related products.
Notwithstanding the recent approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10, Gary Gensler, the head of the United States Securities and Exchange Commission (SEC), maintains that this action does not represent an endorsement of Bitcoin (BTC). He clarified this in a statement issued shortly after the historic approvals took place.
The SEC chair went on to underscore the agency's doubtful stance on the popular cryptocurrency, drawing a comparative line between Bitcoin's speculative character and the practical usage of precious commodities like gold, silver, and platinum. Gensler pointed out that Bitcoin is often exploited in conducting unlawful and illicit transactions. Although, some emerging evidence seems to challenge this perception.
He further remarked that while the SEC maintains a neutral standpoint, it should be noted that the base assets in the metals ETPs have both industrial and consumer applications. On the contrary, Bitcoin is a primarily volatile asset, known for its speculative nature and its role in facilitating acts like ransomware, money laundering, sanction avoidance, and funding of terrorism.
With this in mind, Gensler advised investors to proceed with caution regarding Bitcoin and any investments linked to its valuation.
On this day, January 10, the securities regulating authority greenlit the 19b-4 applications from ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton, thereby approving eleven spot Bitcoin exchange-traded products. Details from SEC indicate this.
Updates on this evolving story will continue to be appended as and when new information becomes available.
Published At
1/11/2024 1:23:51 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.