US Securities and Exchange Commission (SEC) Chairman Gary Gensler took to social media platform X (formerly Twitter) as many asset managers await a final decision on approve or deny their Bitcoin spot exchange-traded fund (ETF) application.
In an X post dated January 8, Gensler urged cryptocurrency investors to remember a few things that does not specifically mention spot Bitcoin ETFs. According to the SEC chairman, asset managers “may not be in compliance” with federal securities laws when offering cryptocurrency investment vehicles, and cryptocurrencies “can be particularly risky” and are “often volatile.” ”.
Gensler said:
“Scammers continue to exploit the growing popularity of cryptocurrencies to lure retail investors into scams. These investments continue to be flooded with bogus coin scams, Ponzi schemes & pyramid and blatant theft when the project promoter disappeared with investors’ money.”
The SEC chairman’s comments at 10:40 pm (Vietnam time) came about 2 hours after several Bitcoin spot ETF issuers filed amended S-1 applications with the commission – one of the actions The final move is towards approval of this investment vehicle in the United States. Although at the time of writing it is uncertain whether the SEC will approve one or more applications at the same time including applications for Valkyrie, WisdomTree, BlackRock, VanEck, Invesco and Galaxy, Grayscale, ARK Invest and 21Shares, Fidelity, Bitwise and Franklin Templeton.
Many have criticized Gensler for the SEC’s failure to approve a spot cryptocurrency ETF despite multiple asset managers applying for it over the years. Meanwhile, regulators in Canada allow more companies to list spot Bitcoin ETFs on exchanges starting in 2021.
The S-1 filings on January 8 were somewhat anticipated – partly due to the deadline from the SEC following multiple 19b-4 filings on January 5. While both proposed a further move for the SEC to allow the listing of crypto ETFs on US exchanges, they did not guarantee approval.
The Commission still has the option of rejecting the application, but it requires reasons different from those previously used for other ETFs. In August, a federal judge ordered the SEC to reconsider a spot BTC ETF application from Grayscale, saying the commission was “arbitrary and capricious” in rejecting the investment vehicle.
