Home News Gary Gensler commented about the first Bitcoin-linked ETF

Gary Gensler commented about the first Bitcoin-linked ETF


The ProShares Bitcoin exchange-traded fund (ETF) futures are based on a “highly speculative asset class” with all aspects of volatility. The United States Securities and Exchange Commission (SEC) Chair Gary Gensler stated this on CNBC when discussing the start of trading.

Thus, he confirmed the position of the regulator regarding the possible approval of spot ETFs based on the first cryptocurrency. Applications for the launch of such ETFs have been submitted to the regulator since about 2017. But none of the potential issuers convinced the Commission of the stability of the Bitcoin spot market to manipulation.

Gensler repeated in an interview that SEC “should be technology-neutral, but not policy neutral”. He went on to say: “What we’re trying to do is ensure to the best we can within our authorities; to bring projects into the investor protection perimeter.”

SEC approval

Earlier 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 complied with the Investment Company Act of 1940.

Later on October 15, the SEC approved an ETF prospectus from ProShares. Trading in the fund’s shares started on the New York Stock Exchange (NYSE) on October 19.

Commenting on the launch of the product, Gensler noted that the regulator seeks to consider new projects from the point of view of investor protection. And Bitcoin futures have been under the supervision of a subsidiary agency of the SEC — the Commodity Futures Trading Commission (CFTC) for several years. “You have a product that has been controlled by a federal regulatory agency for the last four years. And it also falls under the jurisdiction of the SEC under the Investment Companies Act of 1940. This gives us a certain opportunity to ensure the protection of investors,” he explained.

ProShares Bitcoin ETF (BITO)

Recall that the trading volume of Bitcoin ETF from ProShares (BITO) on the day of its debut on the exchange reached almost $1 billion. According to this indicator, the instrument ranked second among all exchange-traded funds, Bloomberg writes.

A product launched by BlackRock based on shares of green energy companies (BlackRock U.S. Carbon Transition Readiness ETF) showed a higher value with $1.16 billion. At the end of the session, BITO increased in price by 4.9% to $41.94; against the background of Bitcoin’s growth to $64,000.

On October 20, trading for BITO options on NYSE Arca Options and NYSE American Options will begin.

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