SEC Chair Gary Gensler responds to concerns about first Bitcoin-linked ETF
In a recent interview, Simeon Hyman, the head of investment strategy at ProShares, expressed the view that the availability of regulated futures within a 40-act ETF could provide a significant opportunity for many individuals who have been hesitant to invest in Bitcoin, enabling them to finally participate in the market.
David Becker 
Gary Gensler, the Chair of the United States Securities and Exchange Commission, and Simeon Hyman, ProShares' Head of Investment Strategy, engaged in a discussion regarding the launch of the inaugural Bitcoin-linked exchange-traded fund (ETF) in an interview with CNBC on Tuesday.
The ProShares Bitcoin Strategy ETF, also known as BITO, is structured around CME Bitcoin futures contracts. CNBC's commentator, Bob Pisani, relayed concerns from certain investors who feared that BTC futures might not accurately reflect the BTC spot price.
Hyman countered these concerns by stating, "The futures market is a more reliable avenue for price discovery. The CME futures market witnesses more trading volume than the largest U.S. cryptocurrency exchange. We introduced a similar mutual fund on 7/28, and since our launch, the Bitcoin Reference Rate has risen by 52%, our BTC mutual fund has surged by 52%, and the BTC Greyscale Trust has grown by 37%."
The introduction of BITO is accompanied by news that other BTC-linked funds, such as Valkyrie's Bitcoin Strategy ETF, are poised to commence trading on the Nasdaq. Additionally, a new blockchain-industry-oriented fund named the Volt Crypto Industry Revolution and Tech ETF intends to initiate trading soon.
Pisani inquired about Gensler's earlier statements, in which he had expressed different concerns regarding BTC futures-linked funds compared to fully-linked BTC funds. Gensler clarified his position by stating:
"What we are aiming to achieve is to include new projects within the perimeter of investor protection. BTC futures have been under the supervision of the SEC's sister agency, the Commodities Futures Trading Commission, for the past four years. This means that it has been overseen by a federal regulator for four years, and it is also under the SEC's jurisdiction through the Investment Company Act of 1940."
Hyman conveyed his confidence in the new fund, citing the historical price trends of BTC, U.S. securities regulations, and the newfound opportunity for investors:
"There's a significant history in this regard. We believe it will closely mirror the BTC price, and, more importantly, we believe that the combination of a regulated futures market and a 40-act ETF will substantially broaden the accessibility for many individuals who have been waiting on the sidelines to conveniently gain exposure to Bitcoin."
