April 19, 2024
Gensler Credits Grayscale's Court Win for Bitcoin ETF
Bitcoin ETF

Gensler Credits Grayscale’s Court Win for Bitcoin ETF

Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, acknowledged the significance of Grayscale’s court victory in the approval of spot Bitcoin exchange-traded funds (ETFs) on Jan. 12.

Despite rejecting similar applications since 2013, Gensler, in an interview with CNBC’s Squawk Box, stated that the court decision favoring Grayscale in August 2023 altered the SEC’s perspective on crypto investment vehicles:

“We had disapproved a number of these [applications for a spot Bitcoin ETF] over the years, and something had changed. I’m a deep believer in the rule of law and respect for the courts, and taking a new court decision into consideration, we move forward. I think this is the most sustainable path forward.”

However, Gensler emphasized that the approval did not constitute an endorsement of Bitcoin. “We do not endorse [Bitcoin].”

In June 2022, the SEC denied Grayscale’s application to convert its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, citing concerns about its ability to prevent fraudulent and manipulative acts. Grayscale then filed a petition for review, resulting in a significant victory on August 29, 2023, when the court ruled in their favor. The legal battle proved fruitful as the SEC approved ten ETFs holding Bitcoin as their underlying asset on Jan. 10.

During the inaugural trading session, Grayscale’s GBTC dominated with a trade volume of $2.3 billion, nearly half of the overall $4.5 billion volume, according to Yahoo Finance. BlackRock’s iShares Bitcoin Trust (IBIT) ranked second with a trading volume of around $1 billion. BlackRock’s CEO Larry Fink, in an interview with CNBC’s Squawk Box, expressed his belief in cryptocurrency as an asset class rather than a currency.

Image by Flickr

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