SEC Chair Gensler Calls Bitcoin a “Speculative, Volatile” Asset Amid ETF Approval

• SEC approves trading of first-ever spot Bitcoin exchange-traded funds (ETFs).
• SEC Chair Gary Gensler emphasizes non-endorsement of Bitcoin, calling it a “speculative, volatile asset” used for illicit activities.
• Gensler votes for approval alongside Republican commissioners, while Democratic commissioners Crenshaw and Lizárraga vote against.

The Securities and Exchange Commission (SEC) today approved the trading of the first-ever spot Bitcoin exchange-traded funds (ETFs). However, SEC Chair Gary Gensler, emphasized that this “does not approve or endorse Bitcoin,” calling it a “speculative, volatile asset” used for illicit activities.

Gensler’s approval comes after a years-long regulatory battle with the crypto industry. For years, the SEC has rejected attempts to list spot bitcoin ETFs, citing concerns about market manipulation and investor protection. 

However, a recent court ruling that criticized the SEC for rejecting Grayscale Investments’ ETF application prompted a re-evaluation of its stance. In an official statement, Gensler said:

I feel the most sustainable path forward is to approve the listing and trading of these spot bitcoin ETP shares.

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