[Bitcoin Now] Expectations Rise for ETF Launch as Pro-Cryptocurrency SEC Chief Takes Office

Gary Gensler Appointed as Chairman of the U.S. SEC

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin remained in the 80 million KRW range. Meanwhile, attention is focused on whether a Bitcoin exchange-traded fund (ETF) will be launched as Gary Gensler, known to be favorable toward cryptocurrencies, has been appointed chairman of the U.S. Securities and Exchange Commission (SEC).

According to the domestic cryptocurrency exchange Upbit, as of 3:16 PM on the 16th, Bitcoin was recorded at 79.17 million KRW, down 0.62% from the previous day.

Interest is growing as to whether the newly appointed SEC chairman Gensler will bring significant changes to the cryptocurrency market. According to U.S. economic media CNBC on the 14th (local time), the U.S. Senate approved Gensler’s nomination by a vote of 53 to 43. Gensler’s term will last until June 2026.

During Gensler’s term, it is expected that the SEC, which had been negative toward cryptocurrencies, will change its stance. Former SEC chairman Jay Clayton expressed concerns that Bitcoin posed risks of market manipulation and did not establish related regulations or systems. Since 2013, the SEC has rejected all Bitcoin ETF launch applications citing the possibility of market manipulation. On the other hand, Gensler, who previously taught blockchain courses at the Massachusetts Institute of Technology, is considered to have an interest in cryptocurrencies and is relatively favorable toward them.

One of the immediate challenges for Chairman Gensler is whether to approve the launch of a Bitcoin ETF. Currently, there are a total of eight Bitcoin ETF applications submitted to the SEC. The U.S. asset management firm VanEck has already completed the initial comment submission process, and a decision on whether to continue review will be made in May. Furthermore, with the successful Nasdaq listing of Coinbase, the largest U.S. cryptocurrency exchange, on the 14th, there is an assessment that the cryptocurrency market is beginning to be incorporated into the regulatory framework. SK Securities researcher Han Dae-hoon explained, “Recently, governments around the world have shifted their stance from banning the cryptocurrency market to fostering the industry through regulation.”

Meanwhile, there are predictions that Bitcoin will reach $100,000 (approximately 111.96 million KRW). On the 15th, Richard Byworth, CEO of U.S. blockchain financial services company DigiNex, said in an interview with Bloomberg, “As more participants enter the cryptocurrency market, Bitcoin will reach $100,000 within the next 12 to 18 months,” adding, “However, the rate of increase is not expected to be as fast as it has been so far.”