The U.S. Securities and Exchange Commission (SEC) has finally approved the first spot Bitcoin ETF after a lengthy process, stirring the crypto community. SEC Chairman Gary Gensler’s subsequent remarks emphasized that the approval does not equate to an endorsement of Bitcoin itself and cautioned investors about the high risks associated with Bitcoin and related cryptocurrency products.
Gensler urged investors to be skeptical due to the high volatility and risks in the crypto market. He highlighted the SEC’s cautious approach to certain financial products related to Bitcoin, suggesting a need for vigilance among investors.
Cathie Wood, founder of Ark Investment Management LLC, expressed surprise at Gensler’s comments following the ETF approval, indicating a disconnect between the SEC’s actions and the chairman’s statements.
In an interview with Bloomberg Radio, Wood criticized Gensler’s continued scrutiny of the entire crypto sector despite the approval, suggesting that the SEC’s decisions might be reluctant and reactionary.
Wood also highlighted the growing curiosity about the evolving digital assets sector, which seems to be at odds with existing regulators. She remains optimistic about Bitcoin’s new era, especially with the approved ETF application made in collaboration with 21Shares by Ark. The Bitcoin ETF approval marks the end of a decade-long wait and signals the start of a new chapter for Bitcoin, with a slight price surge to $47,000 after the announcement.