**SEC Approves Spot Bitcoin Exchange-Traded Products (ETPs) Despite Cautionary Stance**
In a statement issued on Jan. 10, 2024, SEC Chair Gary Gensler announced the approval of spot bitcoin exchange-traded product (ETP) shares. Gensler highlighted a shift in circumstances, referencing a court ruling that led to the vacating of a previous disapproval order related to Grayscale's proposed ETP.
Gensler emphasized the Commission's merit-neutral approach, stating that approval is contingent on compliance with existing regulations. The decision applies specifically to ETPs holding bitcoin, and Gensler clarified it shouldn't be interpreted as a willingness to approve listing standards for crypto asset securities.
The statement outlined investor protections, requiring sponsors to provide comprehensive disclosures and ensuring listing on registered national securities exchanges with anti-fraud and manipulation measures. Gensler warned of potential risks associated with bitcoin, noting its speculative nature and illicit uses.
While the approval marks a significant development, Gensler clarified that it does not endorse bitcoin itself. Investors are urged to exercise caution due to the inherent risks associated with cryptocurrency.
