Thursday, August 18, 2022

Community reacts after SEC’s Gensler affirms BTC’s commodity status

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Securities and Trade Fee Chairman Gary Gensler riled up Crypto Twitter on Monday after affirming that Bitcoin (BTC) is a commodity. Questions had been raised about its affect on Grayscales’ proposed Bitcoin ETF and why Ethereum wasn’t talked about.

Talking to Jim Cramer on CNBC’s Squawk Field on Monday, June 27, the SEC chair mentioned whereas many crypto-financial property have the important thing attribute of a safety, Bitcoin is the “just one” that he was snug publicly labeling as a commodity.

“Some, like Bitcoin — and that is the one one I will say as a result of I am not going to speak about any considered one of these tokens, however my predecessors and others have mentioned they’re a commodity.”

Grayscale Bitcoin ETF

The remarks kicked up chatter about Grayscale’s software to transform its Bitcoin Belief right into a spot-based exchange-traded fund (ETF) — which is anticipated to see a yes-or-no resolution from the SEC on July 6.

James Seyffart, an ETF analyst at Bloomberg Intelligence, informed his 19,300 Twitter followers that whereas Gensler’s remarks are constructive for Bitcoin, it will not be sufficient to see Grayscale’s Bitcoin-spot ETF authorized subsequent week.

Eric Balchunas, a senior ETF analyst at Bloomberg, made related feedback, noting he noticed solely a 0.5% likelihood of Grayscale’s GBTC being allowed to transform to an ETF. 

No point out of ETH

Crypto Twitter additionally picked up on the truth that Gensler avoided mentioning whether or not he positioned Ethereum (ETH) in the identical commodities boat, regardless of the regulator and the Commodity Futures Trading Commission (CTFC) beforehand agreeing that the asset was a commodity identical to Bitcoin.

Optimistic for Bitcoin

Nonetheless, Gensler’s views on Bitcoin have been seen as a constructive for the king of crypto.

Bitcoin bull Michael Saylor shared the video to his 2.5 million Twitter followers, including that Bitcoin is crucial as a treasury reserve asset, which is able to enable governments and establishments to help it as a digital asset to develop the financial system.

In the meantime, Eric Weiss, founding father of Blockchain Funding Group noted on Twitter that Gensler is the second SEC chair to declare Bitcoin a commodity, making it close to inconceivable for this classification to be altered sooner or later.

Associated: Google users think BTC is dead — 5 things to know in Bitcoin this week

Curiously, the constructive information for Bitcoin resulted in one other worth decline, falling from a 24-hour excessive of $21,478 to $20,635 on the time of writing.

Ethereum has fallen from a 24-hour excessive of $1,234 to $1,171 on the time of writing because the bears retain their grip on the markets.