On Wednesday, the Securities and Exchange Commission (SEC) approved the listing and trading of nearly a dozen spot bitcoin exchange-traded funds (ETFs). This marks the first time the SEC has approved such a large number of ETFs related to the cryptocurrency.
The news was met with celebration from crypto advocates, while critics of digital tokens warned of potential losses in the future. Here’s a look at how investors, analysts, regulators, and other experts reacted to this landmark decision.
Chamath Palihapitiya, CEO of Social Capital, tweeted, “We built the world’s first nuclear bomb in the 1940s in just over five years. We are the same country that just took more than 10 years to approve an ETF to buy an imaginary coin made up of letters and numbers.”
Nigel Green, CEO of deVere Group, stated in an email that the approval of bitcoin ETFs is a “watershed moment” for the entire crypto market. He predicts that the institutional validation, increased accessibility, and global adoption will drive BTC prices to near all-time highs.
Neil Wilson, chief market analyst at Finalt, noted that the approval could have important implications for the legitimacy of bitcoin as an asset and its potential for mainstream adoption. However, he also pointed out the question of whether major players like JPMorgan will get involved.
Mohamed El-Erian, former Pimco CEO, wrote in an op-ed that the decision is a “game changer” for crypto as a financial asset, but not as a potential global currency. He believes it will help counter legitimacy concerns and provide cover for other regulators.
Balaji Srinivasan, former Coinbase CTO, tweeted that the bitcoin ETF is a “spiritual reversal” of a 1935 executive order that limited gold ownership in the US, referencing the digital gold aspect of bitcoin.
In a public statement, SEC Chair Gary Gensler acknowledged the speculative and volatile nature of bitcoin and its use in illegal activities. He warned investors to remain cautious of the risks associated with bitcoin and crypto-related products.
SEC Commissioner Caroline Crenshaw expressed her deep concerns about the decision, citing the potential for fraud and manipulation in the spot bitcoin markets and the lack of oversight for these ETFs. She believes that this approval sets up a potential failure in the future, with investors bearing the brunt of the consequences.
Overall, the approval of nearly a dozen spot bitcoin ETFs by the SEC has sparked a range of reactions from different experts and individuals. While it may bring more legitimacy and accessibility to the crypto market, it also raises concerns about potential risks and investor protection.
