SEC Chair Gensler Issues Three Critical Warnings Following Bitcoin ETF Decision

Bitcoin (BTC), the world’s most valuable cryptocurrency, surged past $47,000 on Monday after two of the Bitcoin spot ETF applications, from WisdomTree and VanEck, were added to the Depository Trust & Clearing Corporation’s (DTCC) list for clearance. 

The move comes just two days before the US Securities and Exchange Commission’s (SEC) deadline to decide whether to approve, deny, or delay the application for a Bitcoin spot ETF by ARK Invest and 21Shares. 

Bitcoin Surges Past $47,000 After WisdomTree And VanEck’s BTC ETFs Were Listed On DTCC 

VanEck’s fund has been added under the ticker symbol $HODL whereas WisdomTree’s was listed with the ticker $BTCW. Last month, spot Bitcoin ETF applications from asset managers including BlackRock, Fidelity, Bitwise, and Invesco Galaxy were also added to the DTCC’s clearance list. 

However, the listing does not indicate that the exchange-traded funds received regulatory clearance as the SEC is yet to approve the Bitcoin-focused investment products. 

Earlier on Monday, there were fears that approval of the ETFs could be further delayed after the regulator issued additional comments on the form S-1s of the applicants. However, experts assured that the measure was simply regulatory compulsions and had nothing to do with the agency’s final decision. 

Moreover, sources associated with the ETF issuers clarified that the SEC had not informed them of any plan change. 

S-1 filings are said to be one of the last moves made toward potentially approving an investment vehicle in the United States. They were expected as part of a January 8 deadline from the regulator following 19-b-4 filings made on January 5. 

SEC Chairman Gary Gensler Warns Of Crypto Amid Potential Approval Of Bitcoin ETFs

Meanwhile, SEC chairman Gary Gensler, who has long been a critic of cryptocurrencies, took to X to warn about investing in digital assets. 

In a series of posts made on Monday, the former investor banker at Goldman Sachs warned that those offering crypto asset investments or services may not be complying with applicable laws, including federal securities laws. 

Further elaborating his point, Gesler noted that investors in crypto asset securities should understand that they may be deprived of key information about the products and other important protections connected to their investment. 

In a second post, the SEC chairman stressed that crypto asset investments can be “exceptionally risky” and are “often volatile” and that several major platforms and cryptocurrencies have become insolvent or lost value. Therefore, investments in crypto assets continue to be subject to significant risk, warned Gensler. 

Furthermore, he cautioned investors that fraudsters continue to exploit the rising popularity of crypto assets to “lure retail investors into scams”, and that these investments continue to be “replete” with “fraud, bogus coin offerings, Ponzi and pyramid schemes, and outright theft where a project promoter disappears with investors’ money”. 

Crypto News: Bitcoin ETF Issuers File Final Key Document With The SEC Before Approval

Bitcoin Rose 10% In 2024 In Anticipation Of An ETF Being Approved In The US

However, it is not guaranteed that the SEC will approve one or multiple Bitcoin ETFs at the same, come January 10. Currently, applications for the investment product have been made by BlackRock, Valkyrie, Invesco and Galaxy, ARK Invest and 21Shares, Fidelity, Bitwise, Franklin Templeton, Grayscale, WisdomTree, and Bitwise. 

Since the turn of the year, Bitcoin has climbed 10% in value, contrasting with drops across the stock and gold markets. The apex cryptocurrency being up 172% in the past 12 months in an indication of growing interest and expectation of greater adoption by mainstream investors via the potential ETFs. 

Despite jumping 6.5% on Monday to hit $47,000, Bitcoin dropped to the $46,600 range earlier today. As of press time, BTC is trading at $46,762 – up 7.1% in the last 24 hours.