- The SEC approves the Bitcoin ETF applications submitted by almost 11 firms.
- Gary Gensler and two Republican commissioners voted for the approval.
- Two Democrat Commissioners opposed the approval, concerned about the potential threat of the crypto market.
The prolonged anticipations and discussions over the U.S. Securities and Exchange Commission’s (SEC) Bitcoin ETF approval took an astounding turn with the regulator’s game-changing move. Despite the agency’s approval of Spot Bitcoin ETF applications, the SEC’s commissioners were conflicted in terms of agreements and disagreements.
According to reports, the Securities and Exchange Commission (SEC) has approved the ETF applications submitted by almost 11 firms, including BlackRock, Fidelity, Invesco, Ark Investments, and VanEck.
In an official statement, SEC Chair Gary Gensler stated, “Today, the Commission approved the listing and trading of a number of spot bitcoin exchange-traded product (ETP) shares.”
However, the five SEC Commissioners had contrasting opinions regarding the necessity of an ETF launch. While Gary Gensler, a Democrat, joined the SEC’s two Republican commissioners in supporting the approval, the regulatory agency’s two Democrat commissioners voted against the ETF launch.
Though Gensler was mostly criticized for his anti-crypto stance, with the Bitcoin ETF approval, the SEC Chair has opened opportunities for investors and traders. Ark Invest CEO Cathie Wood commented, “We think that the SEC approval, should we and others get it, is a green light for institutions.”
Republican Commissioners Hester Peirce and Mark Uyeda held positive perspectives on the potential benefits of the ETF launch. Peirce has been advocating for a Bitcoin ETF launch for a long time. With the approval, she posited that the decision marks an end to the “unnecessary, but consequential, saga.”
While some called the SEC’s move a landmark decision, Commissioner Caroline Crenshaw described it as “unsound” and “ahistorical.” Concerned about the potential threats, including “fraud and manipulation,” Crenshaw foresees an impending danger following the ETF launch.
Portraying the ETF approval as the beginning of “tomorrow’s failure,” she asserted,
I am concerned about what comes next — when new, potentially more speculative products bearing greater risks of investor harm seek to list, we will hear a chorus of well-heeled voices saying that the SEC’s hands are tied by the new standards that we have set.
Jaime Lizarraga was the second Democrat Commissioner who joined Crenshaw’s pessimistic view of the ETF launch. In addition, Senator Elizabeth Warren, a crypto critic, argued against the SEC’s move, condemning, “There’s no doubt that the SEC made the wrong decision here.”
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