U.S. Securities and Exchange Commissioner (SEC) Gary Gensler has provided a strong sign of support for the Bitcoin exchange-traded fund, though not exactly what crypto fans expected.
In his first major speech on the crypto exchange fund, Gensler suggested that openness to ETF focused on Bitcoin future requires investors to put enough money on trade margin. That is contrary to a Bitcoin fund that crypto enthusiasts are hoping for.
Matthew Sigel, VanEck head of digital assets research, interpreted Gensler’s speech implying that Bitcoin ETFs are substandard vehicles.
“We see Bitcoin futures as inferior products that have consistently underperformed the Bitcoin price and bring additional complexities in regards to how they must be managed, at a higher cost than ETFs.”
SEC is yet to approve crypto ETF though several of them have filed for authorization since 2020. In a tweet, Gensler implied that if ETFs are to be widely adopted, they have to comply with rules and regulations.
“If crypto is going to be widely adopted, it needs some rules of the road and a cop on the beat to enforce them.”
In the past, policymakers have voiced concerns over fraud, price manipulation, and volatility. However, Gensler exhibited support for the blockchain technology, adding that for crypto to be valuable, SEC has to be aggressive to protect investors.