Gensler’s ‘legendary’ opposition to spot Bitcoin ETFs gets a new critic

ambcrypto.com:

Gary Gensler’s “legendary” opposition to the adoption of a spot Bitcoin ETF has been criticized by The Wall Street Journal Editorial Board. The sharply worded opinion piece, which was released on 6 July, lambasted the Gensler-led Securities and Exchange Commission (SEC) for glaring differences in how the commission handles requests for exchange-traded products (ETPs) related to Bitcoin versus more conventional assets and other commodities.

Every proposed spot Bitcoin ETP, including the last two sponsors Grayscale and Bitwise, have been unceremoniously rejected by Gensler’s SEC.

In fact, according to SEC Commissioner Hester Peirce,

“The Commission’s opposition to a spot Bitcoin ETP is nearly legendary.” 

Many businesses want to offer ETPs that follow Bitcoin prices in the same manner that they track stock indices. The goal is to give investors a different option from buying and storing Bitcoin directly. Cryptocurrency owners could lose or forget the password to their digital wallets and hackers might steal cryptos from open wallets.

ETPs, which can draw more institutional and individual investors, avoid these security issues. These could improve market liquidity and reduce trading volatility. The SEC must give its approval because ETPs, like stock and commodity ETFs, are legally categorized as “securities.”

Peirce had also questioned why ETPs haven’t received U.S approval, despite growing acceptance elsewhere. Echoing similar sentiments, the WSJ article claimed,  

“Mr. Gensler purports to be concerned that Bitcoin trading could be vulnerable to market manipulation, which could harm investors in spot bitcoin ETPs. Yet the $390 billion Bitcoin market is the deepest and most mature of all cryptocurrencies. It would be hard for an