In a recent conversation with Jim Cramer on 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. Gensler touched upon the recent approvals of Bitcoin and Ethereum ETFs, while also considering the potential for ETFs for lesser-known cryptocurrencies like SushiSwap (SUSHI) and Bonk (BONK).
During the interview, Cramer posed questions about various coins experiencing significant capital movements, including Cardano, Cosmos, Immutable, Ronin, and MyNeighborAlice. Speculating about the possibility of ETFs for these assets, Cramer inquired about the potential for a SushiSwap ETF within the next two weeks. He also suggested that Bonk and Osmose, with substantial trading volumes, should have representation in the ETF market.
Gensler, remaining cautious in his responses, highlighted the lack of necessary disclosures from many crypto tokens for making informed investment decisions. This lack of transparency could classify these tokens as unregistered securities, complicating the approval process for related ETFs.
The SEC president also expressed concerns about certain practices on cryptocurrency exchange platforms, drawing unfavorable comparisons to operations not permitted on traditional stock exchanges like the New York Stock Exchange. He also mentioned recent bankruptcies in the cryptocurrency space and legal troubles faced by market leaders, including arrests and extradition proceedings.
Regarding Ethereum spot ETF approvals, Gensler noted that it would require some time before registration statements are greenlit for public exchange listings. In contrast, a representative from BlackRock indicated little interest in launching altcoin-focused ETFs, with Bitcoin remaining the primary focus for the company’s clients.
It is important to note that the opinions expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries inherent risks of financial loss.