SEC Chair Gary Gensler and Proshares CEO Simeon Hyman discusses the launch of the first Bitcoin-linked ETF. This is during a CNBC breaking news section on Tuesday.
More so, Proshares Bitcoin Strategy ETF ( BITO) is on CME Bitcoin futures contracts. Accordingly, CNBC commentator Bob Pisano expresses concerns stating that BTC futures may fall off from the BTC spot price.
“The futures market is a better place for price discovery,” Furthermore, Hyman notes.
“The CME futures market trades more volume than the largest US crypto exchange…”
“We launched a similar mutual fund on 7/28 and since we launched on Friday,..”
“the Bitcoin Reference Rate is up 52 percent, our BTC mutual fund is…”
“up 52 percent and the BTC Greyscale Trust is up 37 percent.”
Furthermore, Pisano asks SEC Chair Gary Gensler about former comments. Of course, the comments about not having the same concerns on issuing BTC futures-linked funds and a fully-linked BTC fund.
Then, Gensler explains further,
“What we are trying to do is bring new projects into the investor-protected perimeter…”
“BTC futures have been overseen by the SEC’s sister agency,..”
“The Commodities Futures Trading Commission, for the past four years…” Gensler continues,
“You have something that’s been overseen for the past four years by a federal regulator and it’s also been wrapped…”
“up in the SEC’s jurisdiction through the Investment Company Act of 1940.”
Then, Gensler concludes.
Hyman expressed his confidence in the new fund noting the history of BTC’s price action, US securities laws, and the opportunity for a new opportunity for investors:
“There’s a lot of history here. We believe it will trade quite well…”
“We think regulated futures traded in a 40-act ETF will open the opportunity to get BTC…”
“exposure to a lot of folks who may have been waiting on the sidelines.”
