Even though Gensler, the chairman of the SEC, ultimately approved the spot Bitcoin ETF, his support for Bitcoin and cryptocurrencies was manifestly lacking. His stance explicitly stated that he did not support it. He advised investors to exercise utmost caution when making decisions, considering the myriad risk factors associated with Bitcoin and other products backed by cryptocurrencies.
Gensler’s viewpoint pertains to the SEC’s stance on providing connectivity with specific Bitcoin-based financial instruments and advises investors to exercise caution when entering the cryptocurrency market.
As per Cathie Wood, the founder of Ark Investment Management, Gensler’s remarks regarding the acceptance of Bitcoin by a number of exchange-traded funds did, in fact, baffle her.
She continued by stating that Gensler’s apparent opposition to the entire cryptocurrency industry constituted an act against innovation. She believed that this was an utterly contradictory position that was causing confusion by issuing superfluous warnings. In collaboration with 21Shares, Ark submitted an application for which one of the spot bitcoin ETFs was granted authorization to conduct trading.
The SEC’s decision represents a significant departure from its ten-year-long aversion towards spot bitcoin exchange-traded funds (ETFs). Cathie Wood remarked that this would usher in a new era for Bitcoin and asserted that the Bitcoin ETF would position it as the largest provider. She was of the opinion that institutions in this field ought to proceed with reasonable concerns rather than proceeding without hesitation.
With the approval of the Securities and Exchange Commission regarding exchange-traded funds investing directly in the token, Bitcoin experienced a marginal increase of $47,000. In order to ascertain the type of funds that are being sought, traders are scrutinizing the products with intent.