SEC Chairman responds to US congressmen's Bitcoin ETF letter; Grayscale GBTC conversion survey shows 95% approval from the public

U.S. Congressmen Tom Emmer and Darren Soto wrote to SEC Chairman Gary Gensler in early November last year expressing doubts about the disapproval of a Bitcoin "spot ETF." After three months, Gary finally responded.

Gary Gensler's Response to Congress Members

According to the letter from two congress members, they believe that both spot and futures Bitcoin ETFs are based on the spot market, and since futures Bitcoin ETFs can be traded on the market, spot Bitcoin ETFs should also be allowed. If there is to be a prohibition, the differences in risks between the two should be clearly specified.

After more than 3 months, SEC Chairman finally responded to this letter, as seen in a tweet.

"In reviewing Bitcoin spot ETFs, it is important to ensure they comply with all securities laws. Particularly, considering whether the design of Bitcoin spot ETFs can prevent fraud and manipulation," Gary Gensler stated in the letter.

In the letter, Gary Gensler also reiterated his position of technological neutrality and expressed that they are continuously considering allowing various Bitcoin spot ETFs to trade on the market.

However, in the past few months, the SEC has already rejected Bitcoin spot ETF applications from three companies, including Fidelity, SkyBridge, and WisdomTree, and is expected to make a decision on NYDIG's application in March.

SEC Public Opinion Survey

SEC also sought public opinions on the conversion of Grayscale GBTC Bitcoin Trust Fund to a Bitcoin spot ETF back in October last year, accumulating over hundreds of comments to date. Bloomberg's senior analyst Eric Balchunas summarized these opinions on Tuesday 15th on his Twitter.

"After quickly browsing through the public's thoughts on the SEC, 95% of people agree with most using real identities, pointing out the shocking fact that futures ETFs can be traded but spot ETFs cannot," Eric Balchunas stated.

Among these opinions, many believe that the SEC's prohibition of Bitcoin spot ETFs is actually to protect the rich rather than ordinary investors. They argue that the SEC's concerns about manipulation and high volatility in Bitcoin are unfounded, as the U.S. stock market faces similar issues.

Currently, this opinion survey is still ongoing, and those with thoughts on this case can voice them through the official channels. With the continuous influx of public opinions and proposals for improvement from various companies, it may be hopeful to expect the emergence of Bitcoin spot ETFs in the market.