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- Gary Gensler, SEC Chairman reaffirms support for Bitcoin ETF
- 40 Act provides considerable investor safeguards
- SEC is investigating almost two dozen ETF submissions for bitcoin, bitcoin futures, ether, and ether futures products
Chairman of the Securities and Exchange Commission (SEC) Gary Gensler reaffirmed his support for a specific type of bitcoin exchange-traded fund (ETF) that would invest in futures contracts rather than the cryptocurrency itself on Wednesday.
Bitcoin ETFs, which invest in futures contracts traded on the Chicago Mercantile Exchange and are regulated under the Investment Company Act of 1940, were singled out by Gensler. He said in prepared remarks for a conference that the so-called 40 Act provides considerable investor safeguards, and that he looks forward to staff’s evaluation of such filings.
BTC ETF filings seeks approval
In an August address, he used a similar tone, which sparked a surge of custom-made bitcoin futures ETF filings. The SEC has yet to approve any, although industry observers anticipate decisions as early as October.
The Securities and Exchange Commission is now investigating almost two dozen ETF submissions for bitcoin, bitcoin futures, ether, and ether futures products.
Investors have been less enthusiastic about bitcoin futures-linked products. According to a tweet from analyst Eric Balchunas, one bitcoin futures mutual fund had only $15 million in assets two months after its start.
Earlier also Gensler has shown his approval towards the BTC ETF, a move that crypto enthusiasts feel is very crucial for taking tokens to the mainstream. According to Gensler, an ETF that adheres to the SEC’s rigorous mutual fund requirements might provide investors with required protections. In his first significant address on cryptocurrencies, Gensler expressed interest in an exchange-traded fund (ETF) centred solely on Bitcoin futures, which are issued by CME Group Inc. and need substantial margin to trade.
This seems to be an expression of thought which is now taking its shape amidst the debate. Earlier the SEC has consistently refused to approve a crypto ETF under Gensler and his predecessor, Jay Clayton, citing concerns about transparency and the possibility for market manipulation in the Bitcoin cash market.
The majority of pending ETF applications were filed under laws enacted in the 1930s that allow stock exchanges to list products. Gensler is implying that he’d like to see a filing seeking clearance under a 1940 legislation governing mutual funds. While Gensler is intrigued in Blockchain technology and sees potential value in cryptocurrency, he plans to take proactive steps to protect investors in the field.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
