Cathie Wood remarked that it is unexpected that Gensler, who teaches Bitcoin at the university, harbors such animosity toward Bitcoin ETF.
In anticipation of the U.S. SEC’s announcement regarding the approval status of twelve spot Bitcoin ETF applications, Cathie Wood of Ark Invest provides insightful tidbits regarding the securities regulator’s future approach.
SEC Chair Intends to Become Treasury Secretary
Cathie Wood stated on Tuesday, November 14, during an interview on CNBC’s Squawk Box that Gary Gensler’s potential candidacy for the position of Treasury Secretary may have been the real reason for his delay in launching the spot Bitcoin ETF.
She further stated that Gensler’s reluctance concerning a spot Bitcoin ETF stems from his apprehensions regarding possible manipulation. Cathie Wood, chief executive officer of ARK Invest, asserts that providing a logical justification for SEC Chair Gary Gensler’s resistance to a spot ETF is difficult, given his profound knowledge of Bitcoin (BTC).
The speaker underscored the Bitcoin network’s decentralized and transparent characteristics, which render manipulation exceedingly unlikely. Wood acknowledged Gensler’s proficiency in the domain, noting that prior to assuming the position of SEC Chair, he instructed a course on blockchain and cryptocurrencies at the Massachusetts Institute of Technology (MIT).
In spite of this, Wood remains optimistic regarding cryptocurrencies and anticipates the eventual authorization of a spot ETF. She believes this sanction may function as a catalyst that increases the market capitalization of cryptocurrencies from its present value of $1 trillion to a considerable $25 trillion by 2030.
Bitcoin ETF Approval
The Bitcoin price experienced a substantial increase, reaching a peak of $37,000, while the window for Bitcoin ETF approval was open the week prior. The ultimate decision is expected to be rendered by the US SECÂ on November 17th. The SEC could cause an additional postponement of the ETF approval.
James Seyffart, senior ETF strategist at Bloomberg, stated that SEC delay orders are possible as the deadline approaches for three spot Bitcoin ETF applications. Even with possible setbacks, our outlook and the 90% likelihood of 19b-4 approval by January 10, 2024, remain unaltered.
BlackRock has, intriguingly, alluded to certain stablecoin risks that could result from the approval of the spot Bitcoin ETF. BlackRock emphasizes the potential for stablecoins to induce price fluctuations in Bitcoin, highlighting their volatility.
Although stablecoins are pegged to a fiat currency for a fixed value, they frequently lose their linkage in events such as the banking crisis that followed SVB’s collapse earlier this year.
