SEC Chief Gensler Could Potentially Reject All Bitcoin Spot ETF Requests, Analysts Suggest
Summary:
The head of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, could potentially reject all pending Bitcoin spot exchange-traded fund (ETF) requests, creating a devastating situation, according to ETF analysts at Bloomberg. While they believe this scenario is improbable, they concede it isn't entirely impossible. Gensler's stance on spot Bitcoin ETF has come under recent scrutiny. The SEC's trend of denying spot Bitcoin ETF applications, dating back to 2017, has continued under Gensler's leadership due to concerns over investor protections.
There is a small possibility that the head of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, might decisively deny all pending Bitcoin (BTC) spot exchange-traded fund (ETF) requests, potentially creating a disastrous situation, suggest ETF analysts at Bloomberg. Dave Nadig, a prominent ETF commentator, hinted in a tweet on October 31 to Bloomberg ETF analysts James Seyffart and Eric Balchunas that Gensler could be orchestrating an elaborate scenario where he rejects all accumulated spot Bitcoin ETF requests in a disappointingly humorous twist.
In response to Nadig's speculation, Seyffart conceded that such a scenario has been lingering in his thoughts for quite some time. Seyffart added that if this played out, Gensler's move would be utterly spectacular. Balchunas also chimed in, labelling a potential sudden denial as "extraordinarily sadistic." He further noted such a move would likely provoke a barrage of legal action. However, Seyffart and Balchunas both agreed that while the scenario seems implausible, they couldn't entirely rule out a last-minute denial, explaining their refusal to estimate the chance of approval higher than 90%.
Gensler's perspective on a spot Bitcoin ETF has recently emerged into prominence after a 2019 video came to light where he criticized the SEC's stance on spot ETF products at the time as being inconsistent.
The SEC's track record of rejecting spot Bitcoin ETF applications dates back to 2017, continuing since Gensler took the SEC's helm in 2021. He has since postponed recent spot Bitcoin ETF applications, highlighting concerns over investor protections.
Last year in June, the Grayscale crypto asset management firm legally challenged the Gensler-led SEC for rejecting its attempt to turn its existing Bitcoin trust into a spot ETF. The court sided with Grayscale, describing the SEC's refusal as "random and impulsive." The SEC accepted the verdict without contest.
As of now, the SEC has only given the green light for Bitcoin and Ether futures ETF applications, insisting that spot products lack necessary measures to safeguard investors from potential market manipulations.
Published At
10/31/2023 4:55:10 AM
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