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SEC’s Gensler said this about a possible spot Ethereum ETF

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The SEC, under Gary Gensler, approved several spot Bitcoin ETPs
Despite approval, the SEC maintains a strict position on crypto-regulatory compliance

The U.S. Securities and Exchange Commission (SEC), under Chair Gary Gensler, has taken a significant yet cautious step in the realm of cryptocurrencies by approving a number of spot Bitcoin exchange-traded product (ETP) shares. However, Ethereum exchange-traded funds (ETFs) might not share the same fate.

The SEC’s approval comes with a clear caveat. It focuses on Bitcoin (BTC) and does not extend to the broader cryptocurrency market.

Scope and limitations of SEC’s approval

According to Gensler, the Commission’s approval limits itself to ETPs holding Bitcoin, a non-security commodity, and should not speak for a broader endorsement of cryptocurrencies or their underlying technology.

During a media briefing which revolved around his opinion on Ethereum ETFs, Gensler clearly said,

“As I said two weeks ago, that which we did with regard to bitcoin exchange-traded products is cabined to this one commodity non-security and shouldn’t be read to be anything other than that.”

On 10 January, the agency green-lit 11 spot Bitcoin ETFs in response to a ruling by a D.C. court panel of three judges. This mandated the SEC to reassess Grayscale’s application for a spot Bitcoin ETF.

Gensler commented on the same as well. He said,

“In that light, there’s also better disclosure. They’re listed on stock exchanges now rather than trading in over the counter markets. There were 10 or 11 that went live at the same time that brought a certain amount of competition. You’ve seen some competition that investors benefited from lower fees.”

Gensler’s skepticism involving crypto

Despite the approval, Gensler has been keen to clarify that the SEC’s action does not equate to an endorsement of Bitcoin. He reiterated the risks associated with Bitco

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Author: Prakriti Chanda

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