US Securities and Exchange Commission Chairman Gary Gensler took to Twitter on Monday after confirming that Bitcoin (BTC) is a commodity. Questions have been raised about its impact on Grayscales’ proposed Bitcoin Trading Fund (ETF) and why Ether (ETH) is not mentioned.
Speaking to Jim Cramer on CNBC’s Squawk Box on Monday, the Securities and Exchange Commission (SEC) chairman said that while many crypto-assets have the main feature of security, Bitcoin is “only” he was comfortable rating Publicly as a commodity:
“Some, like Bitcoin – that’s the only thing I’ll say because I’m not going to talk about any of these tokens, but my predecessors and others said it’s a commodity.”
Bitcoin Grayscale ETF
These statements sparked chatter about Grayscale’s application to convert Bitcoin Trust into an ETF on a spot basis – which is expected to see a yes or no decision from the SEC on July 6.
James Seifart, an ETF analyst at Bloomberg Intelligence, told his 19,300 Twitter followers that while Gensler’s comments are positive for Bitcoin, it may not be enough for Grayscale’s Bitcoin ETF to be approved next week.
Eric Balchunas, chief ETF analyst at Bloomberg, made similar comments, noting that he saw only a 0.5% chance of allowing Grayscale’s GBTC to convert into an ETF.
ETH . is not mentioned
Crypto Twitter also picked up on the fact that Gensler declined to say whether he put Ether in the same boat as commodities, even though the regulator and the CTFC previously agreed that the asset was a commodity just like Bitcoin.
Positive for Bitcoin
However, Gensler’s views on Bitcoin were seen as positive for the crypto king.
Bitcoin bull Michael Saylor shared the video with his 2.5 million followers on Twitter, adding that Bitcoin is essential as a reserve asset for the treasury, which will allow governments and institutions to support it as a digital asset to grow the economy.
Meanwhile, Eric Weiss, founder of Blockchain Investment Group, noted on Twitter that Gensler is the second SEC president to declare Bitcoin a commodity, making it nearly impossible to change that designation in the future.
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Interestingly, the positive news for Bitcoin led to another drop in the price, as it fell from the 24-hour high of $21,478 to $20,635 at the time of writing.
Ether is down from a 24-hour high of $1,234 to $1,171 at the time of writing, as bears maintain their grip on the markets.