Although Gary Gensler, chairman of the US Securities and Exchange Commission (SEC) and prominent crypto critic, approved 11 spot Bitcoin exchange-traded funds (ETFs) today, he explicitly denies approving or endorsing Bitcoin.
“While we approved the listing and trading of certain spot Bitcoin ETP stocks today, we have neither approved nor endorsed Bitcoin,” it said.
Gary Gensler Warns Investors Against Bitcoin as Bitcoin ETF Gains Approval
In a recent statement, Gary Gensler provided a detailed overview of the SEC's approval process. Particularly for the 11 spot Bitcoin ETF applications from major US asset management firms that the SEC approved today. He emphasizes that the release of these applications does not mean that the SEC is endorsing Bitcoin.
“It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”
He goes on to say that while investors have already been able to purchase Bitcoin through crypto exchanges and other means, the approval of spot Bitcoin ETFs now provides additional protection for investors.
Gensler explains that sponsors of Bitcoin ETFs will be required to provide full, fair and truthful disclosure of the products.
Additionally, investors in any listed and traded Bitcoin ETF “benefit from the disclosure contained in the public registration statements and required periodic filings.”
Gensler further states that the SEC has been monitoring ETFs and related products for nearly two decades. He assures investors that this product is now being monitored by the regulator. In addition, investors can rest assured that their funds are protected by stricter laws.
“Since 2004, this agency has had experience overseeing spot ETPs for uncollateralized commodities, such as those containing certain precious metals. This experience will be valuable in our monitoring of spot Bitcoin ETP trading.”
At the time of publication, the price of Bitcoin is $46,471.
Bitcoin price chart 1 month. Source: BeInCrypto
Read more: How to Prepare for a BitcoinETF: A Step-by-Step Approach
Recent SEC approval for spot Bitcoin ETFs
On January 10, BeInCrypto reported that the SEC approved 11 spot Bitcoin ETF applications from major asset management firms.
The SEC’s approval of the spot Bitcoin ETF represents a major shift in the regulatory climate.
Additionally, it signals a growing acceptance of cryptocurrencies in traditional financial systems.
The ETF allows investors to gain exposure to Bitcoin without the complexities of direct ownership, such as. B. the management of cryptographic keys. This development has the potential to attract a wider range of investors, including those who prefer traditional investment vehicles.
Read more: Who will own the most Bitcoins in 2024?
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