Gensler Denigrates Crypto After Greenlight for Bitcoin ETFs: Cathie Wood Fumes

Key Points:

• The SEC approved Bitcoin ETFs, a major win for the crypto industry, but Gensler’s statement warned of risks and didn’t endorse Bitcoin itself.
• The complex regulatory framework accompanying the approval might deter institutions from entering the Bitcoin ETF market, even with the potential benefits.
• While the approval marks a significant milestone for crypto, Gensler’s cautious stance dampens the celebratory mood and raises questions about the SEC’s true stance on the industry.

In a move that sent mixed signals to the crypto community, the SEC approved a dozen spot Bitcoin ETFs on Wednesday, paving the way for investors to have direct access to the digital asset. However, Ark Invest CEO Cathie Wood accused Gensler denigrates crypto space.

Read more: Bitcoin Spot ETF Explained: All Things You Need To Know!

Gensler Denigrates Crypto Despite Approving ETFs

“Gensler denigrates crypto space. I couldn’t believe it,” exclaimed Cathie Wood, CEO of Ark Investment Management, in a X Radio interview. Wood, a vocal proponent of digital assets, saw Ark’s joint application with 21Shares for a Bitcoin ETF approved alongside a dozen others on Wednesday.

Gensler, known for his cautious approach to crypto, reiterated in a statement that the SEC’s approval “does not endorse Bitcoin” and cautioned investors about the “myriad risks associated” with it. This dissonance between action and words fueled accusations of hypocrisy from some within the crypto community, who saw it as an attempt to dampen the celebratory mood surrounding the long-awaited green light for ETFs.

New Bitcoin Arena Opens, but Regulatory Maze Awaits Cautious Institutions

However, Gensler’s “trepidation” towards crypto, as Wood describes it, may pose challenges for institutions looking to enter the newly opened market. The SEC’s approval comes with a complex framework of regulations, which institutions will need to navigate with “more diligence,” according to Wood.

Ultimately, the SEC’s decision to approve spot Bitcoin ETFs is a significant step forward for the digital asset industry. However, Gensler’s simultaneous denigration of crypto casts a shadow over the celebration, leaving some to wonder whether the glass is half full or half empty.