In a recent conversation with Jim Cramer, the host of CNBC’s Mad Money, Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), delved into the topic of exchange-traded funds (ETFs) for cryptocurrencies. This discussion, which took place on Wednesday, touched on the recent approvals of Bitcoin and Ethereum ETFs, as well as the potential for ETFs for lesser-known cryptocurrencies like SushiSwap (SUSHI) and Bonk (BONK).
Cramer, known for his insightful questions, brought up several coins that had seen significant capital movements that morning, including Cardano, Cosmos, Immutable, Ronin, and MyNeighborAlice. He inquired about the possibility of ETFs for these assets, wondering aloud about the potential for a SushiSwap ETF in two weeks, and suggesting that other popular tokens like Bonk and Osmose should also have representation in the ETF market.
During the conversation, Gensler approached the topic cautiously, refraining from giving a direct answer. He emphasized the importance of disclosures from crypto tokens for making informed investment decisions, hinting that some tokens may be classified as unregistered securities, making ETF approval more complex.
Gensler also expressed concerns about the practices of certain cryptocurrency exchanges, drawing unfavorable comparisons to operations that would not be allowed on traditional stock exchanges like the New York Stock Exchange. He highlighted recent bankruptcies in the cryptocurrency space and noted that industry leaders were facing legal challenges, including arrests and extradition proceedings.
When discussing the approval process for Ethereum spot ETFs, Gensler mentioned that it would still “take some time” for registration statements to be cleared for listing on public exchanges. In contrast, a representative from BlackRock, a major asset management firm, stated that the company had little interest in launching ETFs focused on alternative coins, maintaining Bitcoin as their top priority for clients.
In conclusion, it is important to note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies carries a risk of financial loss.
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