Despite a downturn in Bitcoin prices, a recent Wall Street Journal report revealed that UBS is offering its clients Bitcoin ETFs. The move by UBS is seen as a precursor to a wider adoption by other asset managers, banks, and retirement systems, with significant market entries anticipated in this phase. SEC Chairman Gary Gensler shared insights on CNBC about the current state of Bitcoin ETFs.
The SEC commission, consisting of five members, had two opposing a spot Bitcoin ETF. However, Gensler’s affirmative vote, along with two other members who had reservations but did not dissent, was decisive. It’s worth noting that regulators did not exhibit such caution before the 2008 financial crisis when companies traded with high leverage.
Gensler pointed out that a court ruling in favor of Grayscale influenced the SEC’s positive stance on Wall Street’s spot Bitcoin ETF trading. He felt compelled to follow the new court decision, emphasizing respect for the rule of law and the judiciary as the most sustainable way forward.
Despite the progress, Gensler reiterated that the approval of Bitcoin ETFs does not equate to an endorsement of Bitcoin itself. The repeated clarification suggests the SEC’s intent to minimize the perception of legitimacy granted to Bitcoin through their approval.
According to Yahoo Finance, Grayscale’s GBTC reached a cumulative volume of $6 billion, with a trading volume of $2.3 billion, highlighting the growing interest in Bitcoin investment vehicles.