SEC’s rejection of Bitcoin ETF is due to Gary Gensler’s political aspirations, says Cathie Wood

  • Wood does not explain why Gensler denies a Bitcoin ETF alleging market manipulation
  • According to Wood, Gensler understands well how Bitcoin works and knows that this is impossible
  • He believes that the rejection is due to Gensler’s political aspirations. He wants to be Secretary of the Treasury.
  • The Secretary of the Treasury must protect the dollar at all costs
  • The SEC will have the final say on Bitcoin ETFs pending a verdict

Ark Invest founder and CEO Cathie Wood noted that the Securities and Exchange Commission (SEC) chair’s resistance to approval of a spot Bitcoin ETF could well be due to his political ambitions, rather than any real motives for thinking about possible market manipulation.

Gensler’s aspirations and rejection of a Bitcoin ETF

For Wood, it is difficult to understand that Gary Gensler, current president of the SEC who understands exactly how Bitcoin and its market works, considers that the digital currency can be manipulated when in theory he has taught classes at the Massachusetts Institute of Technology (MIT). about cryptocurrency and Blockchain technology before heading the government agency.

In an interview for the CNBC news network, Wood noted that Bitcoin operates through “a decentralized and transparent network, [where] all activity can be secured,” so it is very unlikely to be manipulated. Thus, the only explanation he sees for Gensler’s continued refusals to be aware of this is his aspirations to become Secretary of the Treasury.

“What does the Treasury Secretary do? “He is an official who is very focused on the dollar,” Wood said.

The interest in a Bitcoin ETF

Wood’s statements and statements come amid growing interest in the arrival of a Bitcoin ETF to the US market, with the SEC being the body that will have the final say on whether the applications submitted to its office are approved or rejected.

The SEC, under Gensler, has historically denied all applications for a spot Bitcoin ETF to date. However, conditions appear to have changed following the presentation introduced by BlackRock, as the fund management giant included a shared surveillance clause with an exchange to ensure that the price of the digital currency will be free of manipulations.

Analysts consider that this aspect will be decisive in the success of the applications, which is why other companies interested in launching Bitcoin ETFs also included this clause in their presentations, including even Wood’s Ark Invest, in order to be successful in their plans. For this reason, the SEC has seen the need to delay the verdicts until the beginning of next year at the latest, arguing that it requires time to properly analyze each presentation.

On the other hand, the SEC is not going through its best moment regarding its forays against the crypto sector. From the ETF perspective, the agency lost a court case against Grayscale, as the judge in charge ruled that he saw no reason to support the regulator’s rejection of his request. Consequently, they must review their presentation again and it is no longer viable to say no based on the same reasons.