- A recent court decision was the driving force behind the Bitcoin Spot ETF approval, according to SEC's Gensler.
- The SEC has previously denied over 20 applications and the court’s decision is currently limited to Bitcoin.
- Gensler directs investors to remain cautious about risks associated with Bitcoin.
The Securities and Exchange Commission's (SEC) Chair Gary Gensler shed light on the body’s decision to approve Bitcoin Spot ETFs. Gensler explained that between 2018 and May 2023, the Commission denied nearly 20 applications for Bitcoin ETPs.
A US District of Columbia’s court decision, however, was the key factor that influenced his approval for Bitcoin Spot ETFs.
Also read: Elon Musk open to using Bitcoin on X, fueling hope among market participants
SEC Chair says courts interpretation of the law drove BTC Spot ETF approval
The SEC’s approval of the Bitcoin Spot ETF, on Wednesday, January 10, marks a watershed moment for crypto market participants. In a recent statement on the SEC website, Chair Gensler said that the Commission acts within the law and how the courts interpret the law.
The DC Circuit Court of Appeals put an end to the dispute between the US SEC and Grayscale in October of last year, and ordered the financial regulator to revisit its rejection of the asset manager's spot Bitcoin ETF application.
For Gensler this court ruling was a driving force for Spot Bitcoin ETF approval. Chair Gensler felt that the most sustainable path forward after the ruling was to approve the listing and trading of spot Bitcoin ETF shares.
Gensler reminded investors that the Commission is “merit neutral” and does not take a view on particular companies, investments, or the assets underlying an ETP. Therefore, the SEC does not endorse or support Bitcoin per se.
The Bitcoin ETF approval does not signal anything about the Commission’s views as to the status of other crypto assets under the federal securities laws. This is a key piece of information when considering the SEC’s decision on the Ethereum Spot ETF, lined up for May.
Chair Gensler asked investors to remain cautious about the myriad risks associated with Bitcoin, in his statement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Cardano Price Forecast: ADA profit-taking and dormant wallet activity rise as BTC dips below $100K
Cardano (ADA) price hovers around $0.54 on Monday, after falling nearly 15% last week, as tensions in the Middle East escalated following the US attack on Iran. This double-digit correction triggered a wave of liquidation, wiping out a total of nearly $17 million in long positions last week.
Top 3 Price Prediction: Bitcoin, Ethereum, Ripple – Bears set sight on $98K BTC, $2K ETH and $1.77 XRP
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) declined by nearly 5%, 13%, and 7%, respectively, last week as tensions in the Middle East escalated. BTC is nearly at its key support level of around $100,000; a close below this level would trigger further correction.
Top Crypto Gainers Price Prediction: OKB, IP, HYPE post gains, shrug off Bitcoin’s dip to $100,000
The broader cryptocurrency market experiences a surge in selling pressure as Bitcoin (BTC) dips close to $100,000 at press time on Monday. Against this backdrop, the majority of top altcoins trade in the red while OKB (OKB), Story (IP), and Hyperliquid (HYPE) hold bullish momentum.
Analysts slap over 90% chance of approval on altcoin ETFs including XRP and Litecoin following SEC's engagement
Altcoin exchange-traded funds (ETFs) received a boost in approval odds on Friday from Bloomberg analysts James Seyffart and Eric Balchunas, with most of them now having a 90% chance of approval.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.