Even as Bitcoin‘s price experiences a downturn, a recent report by WSJ at the time of writing announced that UBS is offering BTC ETFs to its clients. Spot Bitcoin ETFs are still in their early stages, and the actions taken by UBS should be followed by other asset managers, banks, and individual retirement systems. The real expected massive influx will occur during this period. Let’s see what Gensler revealed today on CNBC.
SEC Chairman on Spot Bitcoin ETF
There were 5 members in the Commission, and while 2 were against the spot Bitcoin ETF, Gensler, who cast one of the 3 “Yes” votes, determined the fate of the voting. Even members who voted “Yes” had concerns but said they would not oppose it. It is worth remembering that regulators did not think this much when they allowed companies to trade with high leverage before the 2008 crisis.
The fate-determining SEC Chairman said that the real reason for the Commission’s positive view on the Wall Street trading of spot Bitcoin ETFs was Grayscale’s court decision. Last year, we discussed the initial transcripts of the Grayscale hearing on COINTURK, mentioning that the SEC had no chance, and when the victory came, we said that the barrier to the approval of ETFs had been lifted. Both have happened. Following this court decision, Gensler expressed their sense of obligation with the following words;
“We have not approved these for years, and something has changed. I am someone who believes in the rule of law and respect for the courts, and we are moving forward taking into account a new court decision. I think this is the most sustainable path forward.”
Gensler also, as he has done before, reminded us of Nakamoto and asked about the contradiction of the current era.
We Do Not Endorse Bitcoin
Despite progress, Gensler reiterated that the approval does not mean an endorsement of Bitcoin. The night the approval came, everyone was asking what Gensler was trying to convey with such a long message. The answer was just one sentence: “Our ETF approval does not mean we approve of BTC,” and that was exactly it.
There is certainly a reason why the same statement is constantly emphasized. With this approval, Gensler wants Bitcoin to seek the least possible legitimacy from them. In other words, the SEC approved it and sees it as legitimate, so let’s invest in it, trying to convey to people that “even if the SEC approves, we do not see it as a solid thing.”
According to Yahoo Finance data, Grayscale’s GBTC reached a cumulative volume of 6 billion dollars along with a trading volume of 2.3 billion dollars.
