SEC chairman Gary Gensler responds to questions about the first bitcoin ETF

The President of the SEC, Gary Gensler, and the CEO of Proshares, Simeon Hyman, they spoke since the launch of the first Bitcoin-linked ETF in a CNBC reporting segment on Tuesday.

The ETF Bitcoin strategy by Proshares, also known as BITO, is based on the Bitcoin futures contracts of the CME. CNBC Commentator, Bob Pisano, shared some investors’ concern that BTC futures may differ from BTC’s spot price:

“The futures market is a better place to find out prices,” said Hyman. “The CME futures market trades more volume than the largest cryptocurrency exchange in the United States. We launched a similar mutual fund on July 28th, and since we did that on Friday, the benchmark for bitcoin is up 52%., our BTC mutual fund is up 52% ​​and the BTC Greyscale Trust is up 37%.

SEC chairman Gary Gensler responds to questions about the first bitcoin ETF
SEC chairman Gary Gensler responds to questions about the first bitcoin ETF

BITO’s debut follows the announcement that other BTC-linked funds, including the Valkyrie Bitcoin Strategy ETF, You will start trading on the Nasdaq. A new fund based on the blockchain industry, called Volt Crypto Industry Revolution and Tech ETF, intends to start trading soon as well.

Pisano asked the SEC chairman about previous comments in which called that I didn’t have the same concerns about issuing BTC futures linked funds as compared to a fully linked fund. Gensler confirmed it:

“We try to introduce new projects into the protected area of ​​the investors. BTC futures have been overseen by the SEC’s sister agency, the Commodities Futures Trading Commission for the past four years, a federal regulator for the past four years, and has also been involved in SEC jurisdiction through the Investment Company Act of 1940.

Hyman expressed his confidence in the new fund by referencing the history of the BTC price action, U.S. securities laws, and a new opportunity for investors:

“There’s a lot of history here. We think it will act quite well. We believe that regulated futures traded in an ETF will provide an opportunity to introduce BTC to a lot of people who may have been waiting on the sidelines. “

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