Gemini Co-Founder Considers SEC’s Rejection of Bitcoin ETFs as a Disaster

• Winklevoss argued that the US Securities and Exchange Commission’s continuous refusal to approve such products has resulted in a disaster for US investors.
• Winklevoss reported that the SEC’s stance mistakenly directed spot Bitcoin trading activities to unregulated areas.
• Experts suggested that the entry of such heavyweights into the crypto investment scene could change the dynamics around ETFs.

Gemini co-founder Cameron Winklevoss strongly criticized the SEC’s stance on spot Bitcoin ETFs and accused the SEC of directing investors to unregulated areas.

Gemini Co-Founder Criticizes SEC

Gemini co-founder Cameron Winklevoss expressed his disappointment on the 10th anniversary of his and Tyler Winklevoss’ initial application to the US regulator for a Bitcoin exchange-traded fund (ETF).

Winklevoss argued that the US Securities and Exchange Commission’s (SEC) continuous refusal to approve such products has resulted in a disaster for US investors.

Winklevoss claimed that the SEC’s actions not only prevented investors from accessing the best-performing asset of the past decade but also directed them towards risky alternatives such as Grayscale Bitcoin Trust (GBTC), which has gained a bad reputation for its trading discount and excessive fees.

Furthermore, Winklevoss alleged that the SEC’s stance mistakenly directed spot Bitcoin trading activities to unregulated areas and also led investors into FTX, which he claimed would be involved in a significant financial fraud in the future.

Winklevoss called for a reassessment of the SEC’s history and urged it to focus on its core duties of protecting investors, promoting fair markets, and facilitating capital formation. He believed that a different approach could yield more positive results for investors.

In the comments section, an NFT enthusiast asked about the impact of recent applications by BlackRock and Fidelity. Experts suggested that the entry of such heavyweights into the crypto investment scene could change the dynamics around ETFs. Dexani CEO Aaron Carroll sarcastically evaluated the situation. Carroll mocked SEC Chairman Gary Gensler’s claim that the “law is clear.”

Carroll’s winking emoji emphasized the irony of the situation:

“According to Gensler, the law is clear, but the long-awaited Bitcoin ETF is still out of reach.”

Institutions Have No Intention of Giving Up on Spot Bitcoin ETF Race

After the SEC recently returned spot Bitcoin ETF applications, stating that they were incomplete and lacked comprehensiveness, a number of investment management companies, including BlackRock and Fidelity, renewed their Bitcoin ETF applications and re-submitted them after addressing the deficiencies.

The companies’ quick action and desire not to waste time clearly indicate that there is a race among ETF applications.