Gary Gensler's ETF Approval Statement Doubles Down On Bitcoin Criticism: 'Primarily A Speculative, Volatile Asset'
Portfolio Pulse from Ivan Crnogatić
SEC Chairman Gary Gensler emphasized that the SEC's approval of the first U.S. Spot Bitcoin ETFs does not constitute an endorsement of Bitcoin. The SEC approved 11 applicants, but Gensler reiterated concerns about Bitcoin's speculative nature and association with illicit activities. The statement contrasts Bitcoin with metals ETPs, which have consumer and industrial uses. Gensler's views align with those of JPMorgan's Jamie Dimon, who has criticized Bitcoin's value. Ark Invest's Cathie Wood sees the approval as positive for Bitcoin, while Bitcoin advocates on social media dismissed Gensler's tone. The approval does not imply that an Ethereum ETF will be approved soon.
January 10, 2024 | 11:06 pm
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NEUTRAL IMPACT
Ark Invest, led by CEO Cathie Wood, is one of the firms with an approved Bitcoin ETF. Gensler's statement may temper excitement and impact the short-term performance of ARKW.
While the approval of Ark Invest's Bitcoin ETF is positive, Gensler's cautionary statement may lead to a neutral short-term impact on ARKW as it could dampen investor enthusiasm.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Bitcoin's price may experience short-term volatility due to the SEC's approval of Spot Bitcoin ETFs and Gensler's critical comments on Bitcoin's speculative nature and use in illicit activities.
The SEC's approval of Bitcoin ETFs is a significant milestone, but Gensler's negative comments could lead to mixed reactions in the market, resulting in neutral short-term price movement for Bitcoin.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90