See More

Gensler Says He Doesn’t Endorse Bitcoin Amid BTC ETF Approval

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • SEC Chair Gary Gensler, a crypto critic, approves 11 spot Bitcoin ETFs but denies endorsing the cryptocurrency.
  • This signals a notable shift, indicating a growing acceptance of digital currencies within traditional financial systems.
  • Investor protection measures include full disclosure requirements and SEC oversight for spot Bitcoin ETFs.
  • promo

Despite approving 11 spot Bitcoin exchange-traded funds (ETF) today, Gary Gensler, the Chair of the United States Securities and Exchange Commission (SEC) and a prominent crypto critic, explicitly denies approving or endorsing Bitcoin.

“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin,” it was stated.

Gary Gensler Warns Investors Over Bitcoin, As Bitcoin ETF Receives Approval

In a recent statement, Gary Gensler provided a detailed overview of the SEC’s approval process. In particular, for the 11 spot Bitcoin ETF applications from major US asset management firms that the SEC gave the nod to today. He emphasizes that the greenlighting of these applications does not equate to the SEC endorsing Bitcoin.

“It should in no way signal the Commission’s willingness to approve listing standards for crypto asset securities.”

He further states that while investors have already been able to purchase Bitcoin through crypto exchanges and other means, the approval of spot Bitcoin ETFs now provides additional protection for investors.

Gensler explains that sponsors of bitcoin ETFs will be required to provide full, fair, and truthful disclosure about the products.

Read more: How To Prepare for a BitcoinETF: A Step-by-Step Approach

Furthermore, investors in any bitcoin ETF that is listed and traded will benefit “from the disclosure included in public registration statements and required periodic filings.”

Gensler further states that the SEC has been overseeing ETFs and related products for almost two decades. He reassures investors that the regulatory body is now overseeing this product. Additionally, investors can have peace of mind knowing that more stringent laws protect these funds.

“Since 2004, this agency has had experience overseeing spot non-security commodity ETPs, such as those holding certain precious metals. That experience will be valuable in our oversight of spot bitcoin ETP trading.”

At the time of publication, Bitcoin’s price stands at $46,471.

Bitcoin Price Chart 1 Month. Source: BeInCrypto
Bitcoin Price Chart 1 Month. Source: BeInCrypto

SEC Recent Approval of Spot Bitcoin ETFs

On January 10, BeInCrypto reported that the SEC had approved 11 spot Bitcoin ETF applications from major asset management firms.

The SEC’s approval of the spot Bitcoin ETF represents a major shift in the regulatory climate.

Furthermore, it signals a growing acceptance of cryptocurrencies within traditional financial systems.

The ETF allows investors to gain exposure to Bitcoin without the complexities of direct ownership, such as managing cryptographic keys. This development can potentially attract a broader range of investors, including those who prefer conventional investment vehicles.

Read more: Who Owns the Most Bitcoin in 2024?

Top crypto projects in the US | May 2024



In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Ciaran Lyons
Ciaran is a cryptocurrency journalist based in Sydney, Australia. He particularly enjoys writing about CBDC developments and the practical implementations of cryptocurrency in real-world scenarios. He has also appeared across major television networks in Australia including Channel Ten, Channel Nine and SBS TV. Prior to his foray into cryptocurrency, Ciaran worked as a presenter on national radio station Triple J.