SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF

SEC Chairman Gary Gensler and Proshares CEO Simeon Hyman discussed the launch of the first Bitcoin-pegged ETF on a CNBC breaking news segment on Tuesday.

Proshares Bitcoin Strategy ETF, also known as BITO, is based on CME Bitcoin futures contracts. CNBC commentator Bob Pisano shared the concerns of some investors that BTC futures could deviate from the spot price of BTC:

"The futures market is a better place for price discovery," Hyman said. "The CME futures market trades more volume than the largest cryptocurrency exchange in the US. We launched a similar mutual fund on 7/28 and since we launched it on Friday, Bitcoin's benchmark rate is up 52 percent. , our BTC mutual fund is up 52 percent and the BTC Greyscale Trust is up 37 percent. "

BITO's debut follows announcements that other BTC-linked funds, including Valkyrie Bitcoin Strategy ETF, are ready to start trading on the Nasdaq. A new fund based on the blockchain industry, called Volt Crypto Industry Revolution and Tech ETF, intends to start trading soon as well.

Pisano asked SEC Chairman Gary Gensler about previous comments in which said I did not have the same concerns with issuing BTC futures linked funds versus a fully linked BTC fund. Gensler confirmed:

“What we are trying to do is bring new projects to the investor-protected perimeter. BTC futures have been monitored by the SEC's sister agency, The Commodities Futures Trading Commission, for the past four years. It has something that has been overseen for the last four years by a federal regulator and has also been brought under the jurisdiction of the SEC through the Investment Company Act of 1940. "

Hyman expressed his confidence in the new fund and pointed to the history of BTC price action, US securities laws, and the opportunity for a new opportunity for investors:

“There is a lot of history here. We think it will market quite well. We believe that regulated futures traded on a 40-act ETF will open up the opportunity for exposure to BTC to many people who may have been waiting on the sidelines. "