Even though SEC Chairman Gensler ultimately approved a spot Bitcoin ETF, his support for Bitcoin and cryptocurrencies has been clearly lacking. He has made it clear that he does not support it. He advised investors to exercise utmost caution when making decisions, considering the numerous risk factors associated with Bitcoin and other products backed by cryptocurrencies.
Gensler’s views relate to the SEC’s position on providing connectivity to certain Bitcoin-based financial products and advises investors to exercise caution when entering the cryptocurrency market.
According to Cathie Wood, founder of Ark Investment Management, Gensler’s comments about Bitcoin’s acceptance by multiple exchange-traded funds actually caught her off guard.
She went on to say that Gensler’s apparent opposition to the entire cryptocurrency industry is anti-innovation. She believed this was a completely contradictory position that raised unnecessary warnings and caused confusion. Ark has teamed up with 21Shares and submitted an application to authorize one of its spot Bitcoin ETFs to conduct trading.
The SEC’s decision marks a significant departure from a decade of aversion to physical Bitcoin exchange-traded funds (ETFs). Cathie Wood stated that this would usher in a new era for Bitcoin and argued that Bitcoin ETFs would establish Bitcoin as the largest provider. She was of the opinion that organizations in this area should proceed with reasonable concerns rather than without hesitation.
Bitcoin experienced a slight rise to $47,000 following the Securities and Exchange Commission’s approval of an exchange-traded fund that invests directly in the token. Traders are intentionally scrutinizing products to determine the type of funds they are looking for.