Securities & Exchange Commission (SEC) Chairman reiterated his support for bitcoin Exchange-Traded Funds (ETFs) this Wednesday, saying they would invest in futures contracts rather than the crypto itself.
Earlier this week, he expressed his belief that “people will be hurt” if the crypto market operates without regulations. He voiced his concerns that SPACs are leaving public market investors defenseless.
This Wednesday, during the Financial Times Conference, he singled out multiple open-end mutual funds invested in futures-based bitcoin traded on the Chicago Mercantile Exchange. He also quoted a 1940 law that offers “significant investor protector” for ETFs and mutual funds.
Gensler struck a similar tone in August by showing support for futures bitcoin ETF, backed by the 1940 law. He said he would support bitcoin funds entering the market under specific conditions.
Meanwhile, Gensler’s agency examines over a dozen ETF filings for both the bitcoin and futures bitcoin products, among others. He mentioned, “I look forward to staff’s review of such filings” in his prepared remarks. However, none of them have been approved yet, and the industry observers are expecting decisions in early October.
After two months of launch, one bitcoin futures mutual fund only amassed $15 million in assets. It shows that investors are not quite eager to plow into futures-based bitcoin products.
The SEC is cautious about approving bitcoin ETFs during the concerns of a wave of applications and the possibility for market manipulation, as previously reported by Insider.