Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC) since 2021, is speculated by experts to be accumulating applications for bitcoin exchange-traded funds (ETFs) with the possible intention of collectively rejecting them. This move could lead to widespread lawsuits and significantly impact the cryptocurrency sector. Gensler’s controversial stance on bitcoin ETFs was a criticism of the SEC‘s inconsistent approach to these financial instruments.
Under Gensler’s leadership, the SEC has consistently prioritized investor safety by rejecting several bitcoin ETF applications. Despite a legal victory for Grayscale in June 2022, when the court ruled in favor of the company after the SEC refused to convert its bitcoin trust into an ETF, the regulator has only approved futures ETFs for bitcoin and ether. The SEC claims that these offer more robust protection against potential market misconduct.
Companies such as Valkyrie Bitcoin Funds, a specialist alternative asset management firm, have amended their prospectus for spot bitcoin ETFs, joining industry leaders such as BlackRock (NYSE:BLK), Ark Invest, WisdomTree, Fidelity, VanEck and Bitwise. The SEC has yet to make a final decision on these Spot BTC ETF filings.
Vanguard has chosen not to participate in this trend due to its focus on “asset classes with intrinsic value,” reflecting Vanguard founder’s stance on ETFs, as stated by Vanguard CEO Tim Buckley in a CNBC interview.
Meanwhile, the price of bitcoin has rallied back above $35,500 today.
