The new chair of the Securities and Exchanges Commission (SEC), Gary Gensler, has hinted a certain type of a bitcoin ETF might be approved.
Speaking at the Aspen Security Forum, Gensler said he expects new ETF applications under the Investment Company Act, ETFs that link to CFTC regulated bitcoin futures; regarding those, “I look forward to seeing what SEC says about those ETFs,” he said after previously clarifying he was speaking in his personal capacity and not on behalf of SEC.
In recognizing that there have been many applications for a bitcoin ETF, he singled out specifically ETFs based on bitcoin futures, with his remark that we’ll see what SEC thinks about them seemingly suggesting he is ready to approve those types of ETFs.
Gensler further said SEC is seeing “progression in the funds space,” specifying filings under 40 Act ETFs. That’s a technical classification with a ’40 Act fund being a pooled investment vehicle offered by a registered investment company as detailed by Citi.
There have been quite a few recent ETF applications that track bitcoin’s price based on CFTC regulated bitcoin futures, with a decision due in the coming months and seemingly likely to find approval going by Gensler’s tone on the matter.