Amid the long-awaited approval of a Bitcoin ETF by the US Securities and Exchange Commission (SEC), the price of BTC has seen a remarkable surge of 23% over the past fourteen days.
However, SEC Chair Gary Gensler, who has been at the forefront of the SEC’s crackdown on the crypto industry, has taken a notable stance against the idea of Bitcoin exchange-traded funds for both institutional and retail investors.
Despite acknowledging that Bitcoin is classified as a commodity and not a security, Gensler remains opposed to the investment strategy associated with Bitcoin ETFs. Surprisingly, a recently surfaced video posted on Social Media X (formerly Twitter) has cast doubt on Gensler’s consistent opposition to Bitcoin ETFs.
SEC Chair Gensler’s Resurfaced Video Sparks Controversy
The video, recorded at an unknown date, captures Gensler’s perspective on the matter. In the video, Gensler states:
I think Bitcoin and Ethereum futures will exist, and Bitcoin ETFs have not, and that feels a little inconsistent for me… even though the laws say that they are quite similar.
This resurfaced video has ignited controversy and raised questions about Gensler’s evolving views on Bitcoin ETFs. Gensler’s prior statement suggests that he saw the potential for BTC ETFs to coexist with Bitcoin and Ethereum futures despite his opposition to their approval.
However, It remains to be seen how Gensler’s past remarks will influence the SEC’s decision-making process and whether they will impact the regulatory landscape surrounding Bitcoin ETFs.
VanEck Proposes Unique Seeding Approach In Amended Spot Bitcoin ETF
VanEck, a prominent investment management firm, has made a significant amendment to its application for a spot Bitcoin ETF.
In a departure from BlackRock’s cash-based approach, VanEck has put forward a novel seeding strategy that involves utilizing real Bitcoin for initial funding. This approach aims to provide the ETF with immediate and direct exposure to the world’s leading cryptocurrency.
The traditional approach to seed funding for ETFs typically involves using cash or cash equivalents. However, VanEck’s proposal to employ actual Bitcoin sets its application apart from previous attempts to launch a spot Bitcoin ETF.
Using real BTC, VanEck aims to bridge the gap between the ETF and the underlying asset, providing investors with a more direct and authentic investment opportunity.
The utilization of real Bitcoin for seed funding carries several potential advantages. Firstly, it allows the ETF to mirror the performance of Bitcoin more closely, as the value of the ETF will be tied directly to the fluctuating price of the digital asset.
This ensures that investors can gain exposure to Bitcoin’s price movements without needing direct ownership or custody of the cryptocurrency.
Moreover, VanEck’s approach offers investors immediate access to Bitcoin through the ETF upon its approval. This instant exposure to Bitcoin could appeal to investors seeking a regulated and accessible vehicle to invest in the cryptocurrency market.
While VanEck’s amended spot Bitcoin ETF application signals a fresh perspective on seeding strategies, it remains subject to regulatory approval. The SEC is yet to provide a definitive timeline for the approval of a spot Bitcoin ETF.
However, VanEck’s approach, utilizing real BTC for seed funding, may contribute to the ongoing discussions surrounding the regulatory framework for cryptocurrency ETFs.
As of the time of writing, BTC has once again gained bullish momentum and remains on an upward trend, approaching the critical $35,000 level. Presently, BTC is trading at $34,700, reflecting a 1% increase over the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com