US Securities and Exchange Commission Chairman Gary Gensler angered the crypto Twitter community Monday after claiming Bitcoin (BTC) is a commodity. Questions have been raised about its impact on Grayscale’s proposed Bitcoin exchange-traded fund (ETF) and why ether (ETH) was not mentioned.
Speaking to Jim Cramer on CNBC’s Squawk Box on Monday, The SEC Chairman said that while many crypto assets have the key attribute of a security, Bitcoin is the “only” thing he wants to publicly call a commodity:
“Some, like bitcoin, and that’s all I’m going to say because I’m not going to talk about those tokens, but my predecessors and others have said they’re good.”
The Grayscale Bitcoin ETF
The comments have sparked debate over Grayscale’s application to convert its Bitcoin Trust into a spot ETF, which the SEC is expected to rule on July 6.
James Seyffart, ETF analyst at Bloomberg Intelligence, told his 19,300 Twitter followers: Although the Comments Genslers are positive for Bitcoin, they may not be enough for Grayscale’s Spot Bitcoin ETF to be approved next week.
This isn’t new from Gensler, but it’s definitely a positive in my opinion. Unfortunately, this is not enough for approval $GBTC‘s conversion into a spot #Bitcoin ETFs. The probability of an SEC clearance next week (or this week) is close to zero in our opinion. https://t.co/mvRnkajGdd
— James Seyffart (@JSeyff) June 27, 2022
That’s not new from Gensler, but I think it’s definitely a positive thing. Unfortunately, this is not enough for GBTC to be approved for conversion into a bitcoin spot ETF. The odds of the SEC passing next week (or this week) are slim to non-existent. That’s our opinion.
Eric Balchunas, a senior ETF analyst at Bloomberg, had a similar sentiment, noting that he saw only a 0.5% chance Grayscale’s GBTC would fall. would convertin an ETF.
No mention of ETH
The Twitter crypto community also took note that Gensler refrained from mentioning whether he also classifies ether as a commodity.although the regulator and the Commodity Futures Trading Commission (CTFC) had previously agreed that the asset was a commodity, just like Bitcoin.
Any thoughts on why Gensler didn’t mention Ethereum as a commodity today? https://t.co/GjN5so63O3 #Ether
— swankyfinance.eth (@swankyfinance) June 28, 2022
Any idea why Gensler didn’t mention Ethereum as a commodity today? https://t.co/GjN5so63O3 #ethereum
Something positive for Bitcoin
Nevertheless, Gensler’s views on Bitcoin have been seen as positive for the king of cryptocurrencies.
The Bitcoin Bull Michael Saylor shared the video with his 2.5 million followers on Twitter, adding that Bitcoin is essential as a Treasury Department reserve asset, which will allow governments and institutions to support it as a digital asset to grow the economy.
#Bitcoin is a commodity essential to any treasury reserve asset. This allows politicians, authorities, governments and institutions to support Bitcoin as a technology and digital asset to boost the economy and extend property rights and freedom to all. pic.twitter.com/b4WmdSRilb
– Michael Saylorâš¡ï¸ (@saylor) June 27, 2022
Bitcoin is a commodity that is essential to any treasury reserve asset. This allows politicians, authorities, governments and institutions to support Bitcoin as a technology and digital asset to boost the economy and extend property rights and freedom to all.
For his part Eric Weiss, Founder of Blockchain Investment Group, pointed outÂ on Twitter that Gensler is the second SEC chairman to designate Bitcoin as an asset, making it nearly impossible for that classification to change in the future.
Oddly enough Positive news for Bitcoin led to another price drop, dropping to $20,635 from a 24-hour high of $21,478 at the time of writing this article.
Ether has fallen from a 24-hour high of $1,234 to $1,171 at the time of writingconfirming that bearish sentiment remains in control of markets.
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