SEC Chairman Gary Gensler Responds to Investor Concerns About the First Bitcoin-Related ETF

SEC Chairman Gary Gensler and Proshares CEO Simeon Hyman discussed the launch of the first bitcoin-related ETF on CNBC's Breaking News segment on Tuesday.

The Proshares Bitcoin Strategy ETF (BITO) is based on the Chicago Mercantile Exchange (CME) Bitcoin futures contract. CNBC commentator Bob Pisano shared some investor concerns that BTC futures may deviate from BTC spot prices:

"The futures market is a much better place for price discovery," Hyman said. "The CME futures market has more volume than the largest U.S. cryptocurrency exchange. We launched a similar mutual fund on July 28, and since last week Since the launch of Friday, the Bitcoin Reference Rate is up 52%, our BTC Mutual Fund is up 52%, and the BTC Grayscale Trust is up 37%.”

Prior to BITO’s listing, other BTC-related funds such as Valkyrie’s Bitcoin Strategy ETF also announced that they would begin trading on Nasdaq. A new fund based on the blockchain industry called the Volt Crypto Industry Revolution and Tech ETF also intends to start trading soon.

Pisano asked about the previous remarks of Gary Gensler, chairman of the US SEC, when he said that he did not have the same concerns about the issuance of BTC futures-related funds and funds based entirely on BTC. Gensler confirms:

“What we are trying to do is bring new projects under the umbrella of investor protection. For the past four years, Bitcoin futures have been regulated by the Commodity Futures Trading Commission (CFTC), the sister agency of the US SEC. For the past four years, it has been regulated by A federal regulatory agency, and it has also been brought under the jurisdiction of the US SEC through the Investment Company Act of 1940."

Hyman expressed his confidence in the new fund, citing BTC’s historical price action, U.S. securities laws, and new opportunities for investors:

“There’s a lot of history here. We believe it will trade well. We think regulated futures trading in ETFs under the Investment Company Act of 1940 will open up exposure to BTC for a lot of people who may have been on the sidelines.” opportunity."

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