Although saying yes to futures-based ETF, the Securities and Exchange Commission (SEC) has maintained its stance on Spot Bitcoin ETF (exchange-traded fund) which is clearly NO.
Representative Tom Emmer of Minnesota shared a letter from US Securities and Exchange Commission Chairman Gary Gensler on Twitter, in which the latter explains why the SEC has refused to approve a spot-based Bitcoin ETF.
The letter made it plain that the agency was still a long way from authorizing such an investment product, emphasizing that it must assure that the market is free of fraud and manipulation:
When reviewing Bitcoin spot ETPS, the Commission must apply all the standards of the Exchange Act, which it has followed in connection with its orders considering previous proposals to list Bitcoin spot ETPs.
In early November, Emmer and Democratic Representative Darren Soto wrote a bipartisan letter to Gensler, asking for clarification on why the agency had failed to approve a spot-based Bitcoin ETF.
The Securities and Exchange Commission (SEC) approved the first futures-based Bitcoin ETF in October, but the securities regulator has rejected every petition to register a spot-based ETF so far. NYDIG, SkyBridge Capital, WisdomTree, and Fidelity, among others, have all been rejected. The immediate exposure to the underlying asset is what makes a spot ETF so appealing.
Emmer has expressed his displeasure with the Securities and Exchange Commission’s refusal to approve a spot-based Bitcoin exchange-traded fund. Gensler has also been chastised by the Minnesota lawmaker for claiming that the vast majority of bitcoins are unregistered securities.
Gensler, who took office in April, has taken a harsh position on cryptocurrencies, citing investor protection as a worry. He did, however, confirm that the United States would not go as far as China in banning Bitcoin.