The Securities and Exchange Commission (<a href="https://en.coin-turk.com/crypto-market-in-decline-latest-status-of-bitcoin-and-top-performing-cryptocurrencies-of-the-day/”>SEC) is expected to announce its opinion on the approval status of 12 spot Bitcoin ETF applications, and Cathie Wood from Ark Invest has made interesting remarks about how the securities regulator approaches the process. Wood claims that SEC Chairman Gary Gensler wants to become the Treasury Secretary and has delayed the approval of the spot Bitcoin ETF for this reason.
Wood: SEC Chairman Wants to Become Treasury Secretary
During an appearance on CNBC’s Squawk Box program on November 14th, ARK Invest CEO Cathie Wood suggested that Gensler’s desire to become the Treasury Secretary could be the reason for the delay in the spot Bitcoin ETF. Wood stated that Gensler’s concerns about the spot Bitcoin ETF are due to potential manipulation fears.
According to Wood, it doesn’t make sense for Gensler to oppose a spot ETF considering his deep knowledge of Bitcoin as the SEC Chairman. Wood also emphasized that the decentralized and transparent nature of the Bitcoin network makes manipulation almost impossible.
Wood pointed out that Gensler taught crypto and blockchain courses at the Massachusetts Institute of Technology (MIT) before his tenure as SEC Chairman, highlighting his expertise in this field.
Despite all these factors, the CEO of ARK Invest maintains her confidence in cryptocurrencies, believing that a spot ETF will ultimately be approved. Wood expects this approval to be a significant catalyst that will increase the value of the cryptocurrency market to over $25 trillion by 2030.
Approval for Spot Bitcoin ETF Could Be Imminent
Last week, Bitcoin’s price saw a significant increase above $37,000 in an environment where hopes for spot Bitcoin ETF approval were growing. The SEC is expected to announce its decision on the ETFs by November 17th, but according to some analysts, the federal regulatory agency’s decision could be postponed to a later date.
James Seyffart, Bloomberg’s senior ETF strategist, stated that as the deadline for the three spot Bitcoin ETF applications approaches, the SEC may decide to delay. However, despite possible delays, he expressed a 90% probability for the approval of the 19b-4 application until January 10, 2024.
On the other hand, BlackRock, the world’s largest asset management company, highlighted some risks that may arise after the approval of the spot Bitcoin ETF. BlackRock specifically pointed out the volatility of stablecoins, indicating the potential risk of creating volatility in Bitcoin’s price. Although stablecoins are usually pegged to a specific fiat currency, events such as the collapse of Silicon Valley Bank earlier this year have shown that they can lose their stability.
