The U.S. Securities and Exchange Commission (SEC) finally gave a nod for the first spot Bitcoin ETF after months of keeping investors waiting on the sidelines. However, SEC Chair Gary Gensler quickly managed to distance himself and the SEC from Bitcoin and crypto.

Cathie Wood Slams Gary Gensler

After approving the first spot Bitcoin ETF in the US, Gensler emphasized that this is not an endorsement of Bitcoin itself. Investors shall exercise caution due to the numerous risks associated with Bitcoin and other products linked to the cryptocurrency, he added.

The SEC Chair’s remarks highlight the regulatory body’s stance on providing access to certain Bitcoin-related financial instruments while underscoring the need for investors to be mindful of the inherent risks in the cryptocurrency market.

Cathie Wood, the founder of Ark Investment Management LLC, expressed surprise at Securities and Exchange Commission Chair Gary Gensler’s statement following the agency’s approval of approximately a dozen exchange-traded funds directly holding Bitcoin.

In a Bloomberg Radio interview on X, Wood remarked that Gensler’s comments seemed to criticize the entire cryptocurrency space, describing it as a typical reaction to disruptive innovation. Wood suggested that the established regulatory framework was clashing with the emerging landscape of digital assets, emphasizing the curiosity of many individuals about this evolving space.

Notably, an application by Ark, in collaboration with 21Shares, was among the spot Bitcoin ETFs granted approval by the SEC for trading on Thursday.

Bitcoin ETF Approval Opens A New Chapter for BTC

The SEC’s decision represents a shift from its decade-long opposition to spot Bitcoin ETFs. Cathie Wood remarked that this development signals a new chapter for Bitcoin, expressing optimism about becoming one of the top providers with this Bitcoin ETF. Wood acknowledged the SEC’s cautious approach, suggesting that institutions will need to navigate the new framework with increased diligence.

Bitcoin experienced a modest ascent, briefly reaching $47,000, following the approval by the US Securities and Exchange Commission of exchange-traded funds directly investing in the token. Traders are now observing the products to gauge the level of funds they attract.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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