What was Cathie Wood’s reaction to Gary Gensler’s critique of the crypto space? This is a question that has been buzzing in the financial world recently. The answer lies in the aftermath of the Securities and Exchange Commission’s (SEC) approval of several Bitcoin Exchange-Traded Funds (ETFs), an event that marked a turning point for the crypto industry. However, the SEC Chair’s skeptical remarks towards Bitcoin and cryptocurrencies cast a shadow over this achievement.
The Controversial Remarks
The joy that followed the approval of the Bitcoin ETFs was short-lived due to the comments made by SEC Chair Gary Gensler. His critical perspective on Bitcoin and cryptocurrencies, in general, drew backlash from industry insiders, including Cathie Wood, the founder of Ark Investment Management LLC.
In an interview with Bloomberg Radio, Wood expressed her disbelief at Gensler’s negative comments, stating that such skepticism is common in industries characterized by disruptive innovation. She said, “He just denigrated the whole crypto space. I couldn’t believe it. This is par for the course in disruptive innovation.” She further added that it felt like a clash between the old and the new, with the established order trying to suppress the emerging one.
The Impact of ETF Approvals
Despite Gensler’s views, the SEC approved 11 Bitcoin ETFs across various domestic securities exchanges, including the NYSE, Nasdaq, and CBOE. This move is set to open doors for a plethora of investors who have been hesitant to navigate the complexities associated with directly purchasing Bitcoin.
Among the approved proposals is ARK 21Shares, a spot Bitcoin ETF developed by Wood’s ARK in collaboration with Swiss firm 21Shares. Other successful proposals came from Grayscale, Bitwise, Hashdex, BlackRock, Valkyrie, Invesco/Galaxy, VanEck, WisdomTree, Fidelity, and Franklin Templeton. Despite these approvals, Gensler reiterated that the SEC does not endorse digital assets, a statement that followed the anticipation of product approval.
A Consequential Saga Ends
SEC Commissioner Hester Pierce, also known as “Crypto Mom” by her supporters, described the approval of 11 spot Bitcoin ETFs as the end of a consequential but unnecessary saga. She noted that the first application for a spot Bitcoin ETF was submitted over a decade ago in the United States. She criticized the SEC for its previous inaction, which forced retail investors to resort to less efficient methods to gain exposure to Bitcoin in the securities markets.
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