Inside the Decision: Cathie Wood Breaks Down Gary Gensler’s Reasons For Holding Back On Spot Bitcoin ETF

As the U.S. SEC prepares to disclose its stance on the approval status of 12 spot Bitcoin ETF applications, Cathie Wood of Ark Invest offers insights into how the securities regulator might navigate the path forward.

Moreover, in her appearance on CNBC’s Squawk Box on Tuesday, Nov 14, Cathie Wood suggested that Gary Gensler’s aspirations for the role of Treasury Secretary could be the underlying reason for the delay in approving the spot Bitcoin ETF.

She highlighted how the Bitcoin network is built: it’s spre­ad and clear to see, making any tricks pre­tty unlikely. Wood brought up Gensler’s knowle­dge about this stuff. He’s no newcome­r. Before becoming SEC Chair, he­ was teaching students about crypto and blockchain at the re­nowned MIT.

Cathie Wood mentioned that Gensler’s reluctance towards a spot Bitcoin ETF stems from his worries about potential manipulation. Given SEC Chair Gary Gensler’s extensive knowledge of Bitcoin (BTC), finding a logical explanation for his resistance to a spot ETF becomes difficult, per ARK Invest CEO Cathie Wood.

Nevertheless, Wood continues to express a positive outlook on crypto, anticipating the eventual approval of a spot ETF. She envisions this approval as a catalyst that could drive the cryptocurrency market cap from its current $1 trillion to a significant $25 trillion opportunity by 2030.

Impending Approval: The Countdown To Bitcoin ETF Greenlight

In the previous week, the price of Bitcoin experienced a notable surge, reaching $37,000, coinciding with the opening of the window for Bitcoin ETF approval. The ultimate decision by the US SEC is expected to be made by Nov 17. The SEC may opt for another extension in approving the ETF.

Additionally, James Seyffart, Bloomberg’s senior ETF strategist, indicated that as the deadline nears for three spot Bitcoin ETF applications, there is a possibility of SEC issuing delay orders. Despite the potential delays, our outlook and the 90% probability for 19b-4 approval by Jan 10, 2024, remain unaltered.

Notably, BlackRock has outlined certain risks associated with stablecoins that could impact the approval of the spot Bitcoin ETF. BlackRock underscores the volatility of stablecoins, emphasizing their potential to induce fluctuations in the price of Bitcoin.

However, despite stablecoins being pegged to a fixed value tied to fiat currency, they can deviate from the peg in events such as the banking crisis that ensued after SVB’s collapse earlier this year.

Related Reading | Crypto Milestone: Bithumb Sets Sights On Landmark Achievement As First-Listed Exchange In Korea

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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