The U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler “actually stands for Bitcoin,” and his views on cryptocurrency regulation are “slightly misunderstood”. The CEO and founder of Volt Equity Ted Park expressed this opinion in an interview with Fox Business.
He believes that the regulator has good reasons to delay the approval of exchange-traded funds (ETFs); based on the first cryptocurrency.
Thus, according to Park, the SEC sees the protection of investors as the main task. And custodial service providers could not convince the Commission that they are really able to ensure the safety of digital assets.
Bitcoin ETFs under consideration
“I can say: I have a gold ETF or a Bitcoin ETF, but I keep this gold in my basement. Will the SEC allow this? Probably not. If companies can’t show that they are able to store it and actually solve many of the problems that Gensler specifically mentioned, it won’t work,” Park said.
The CEO of Volt Equity noted that “at least half” of applications for registration of cryptocurrency ETFs do not take into account what Gensler says.
Moreover, according to the calculations of the analytical firm Arcane Research, at the beginning of October, applications for 12 spot Bitcoin ETFs and seven futures-based ones were under consideration by the SEC.
In August, the head of SEC said that the regulator would consider Bitcoin ETFs. If they were based on futures of the Chicago Mercantile Exchange (CME) and comply with the Investment Company Act of 1940.
Earlier, Volt Equity received SEC approval to launch an ETF fund based on shares of Bitcoin-centric companies. In addition, Park stressed that the tool does not provide direct access to digital gold. “We are trying to understand what people are really looking for, what correlates with the price of Bitcoin? These companies are really focused on cryptocurrency and receive most of their income and profits from it. It is logical that their quotes tend to move with its course,” explained Park.
Recall that previously, Pantera Capital CEO Dan Morehead admitted that; this event could have a negative impact on the price of cryptocurrencies.