Gary Gensler, Chairman of the US Securities and Exchange Commission. Photo: Evelyn Hochstein-Paul via Getty Images
SEC Chairman Gary Gensler warned investors of the high risks and volatility of crypto assets on Monday in a post on X (formerly Twitter), as the Web3 industry anticipates the SEC's decision on several bitcoin spot currencies. Exchange-traded fund (ETF) applications.
“Investments in crypto assets can also be exceptionally risky and are often volatile. A number of major platforms and crypto assets have become insolvent and/or lost value. Investments in crypto assets remain subject to significant risks.” Gensler said.
The SEC Chairman's warning did not specifically refer to the proposed ETFs but coincided with a series of amended Form S-1 filings, also known as initial registration forms for new securities.
The agency is expected to respond to the applications, which include requests from industry heavyweights such as BlackRock, Ark Invest/21Shares and Fidelity, by January 10, with the potential for a landmark approval that could deliver the first bitcoin ETF in the United States. States.
Potential SEC approval of a Bitcoin exchange-traded fund has been long overdue and could signal a new era of mainstream investment opportunities in digital assets. Such a move would not only provide a regulated investment vehicle for Bitcoin, but could also pave the way for further integration of cryptocurrencies into traditional financial systems.
Amended S-1 filings are viewed by various asset managers as a final step before potential approval, and some companies have even reduced fees to attract investors to potential ETF products. For example, ARK Invest and 21Shares proposed waiving their 0.25% fees for the first six months for their initial $1 billion in assets under management, while BlackRock set a competitive ongoing fee of 0.3%.
While the Commission has the option to deny applications, recent legal developments, such as a federal judge ordering the SEC to reconsider a previously denied spot Bitcoin ETF application from Grayscale Investments, operator of the Grayscale Bitcoin Trust, the world's largest bitcoin fund, , notes that the regulator's rationale for any decision will be closely scrutinized.
The potential approval of a spot Bitcoin ETF in the US would follow in the footsteps of neighboring Canada, which has allowed such products to be listed on exchanges starting in 2021.
