Gary Gensler, the SEC Chair, recently interacted with the media and clarified the Commission’s stance concerning Bitcoin and other cryptocurrencies. For reference, Spot Bitcoin ETF applications were approved on January 10, 2024, sparking speculation that more crypto ETFs would make their way into the market. Ether ETF applications are leading the list, with many crypto enthusiasts expecting them to be approved by mid-year.
That may not be the case, as is evident from Gary’s media interaction. Gensler has put out that even though the Commission has approved 11 Bitcoin ETF applications, that does not necessarily reflect their support for the digital asset, Bitcoin. Approval of the Bitcoin ETF merely points out how the product can be traded. Cryptos remain under the radar since most of them are unregulated securities. Also, there is a high chance that approving their ETFs without a proper review could initiate a series of incidents pertaining to market manipulation and fraud.
The US Securities & Exchange Commission remains committed to protecting investors, their interests, and funds. Therefore, they would continue scrutinizing every product before giving it a green light. Gary said this in his words, stating that they have an investor education responsibility at the Commission.
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Gary clarified that the claim that investing in cryptocurrency and equities includes a measure of risk is false. The SEC Chair said that regulations have removed most of the risks to make it a safer place for traders. His acknowledgment extended to the incidents of bankruptcies. He did not mention any entity but said bankruptcy incidents force investors to line up in bankruptcy court.
As for other possible crypto ETFs, there is no certainty that they will see the light at the end of the tunnel. Ether ETF applications, for example, are still in the dark. Speculations are obvious, considering crypto enthusiasts continue to push for adoption and recognition. However, cryptos are also at the center when it comes to their use for illicit activities, including, but not limited to, ransomware and money laundering.
Crypto ETF applications will be reviewed and discussed among the 5-member commission before going on the floor for trading purposes.
Gary’s statements come at a time when Bitcoin is experiencing a significant surge. It is credited to the ease of the selling pressure from GBTC. Bitcoin is currently poised to surpass its ATH of $65k by the end of this year. The listed price of $51,984.59 raises the possibility that that could be a reality way before 2024 ends. Bitcoin halving may pump up the price for an upward trajectory in the middle of the year.
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Expectations about Ether ETF continue to drive its trading price, which is currently up by 5.08% in the last 24 hours to $2,779.96.
