In a scathing critique, Cameron Winklevoss, co-founder of Gemini, has accused the U.S. Securities and Exchange Commission (SEC) of forcing investors into “toxic” and “unregulated” crypto products for the past decade. Winklevoss specifically pointed to the SEC’s constant refusal of spot Bitcoin exchange-traded funds (ETFs), highlighting that it has been 10 years since the Winklevoss twins first filed for their own ETF approval.
In a tweet, Winklevoss stated, “The SEC’s refusal to approve these products for a decade has been a complete and utter disaster for U.S. investors and demonstrates how the SEC is a failed regulator.” He argued that without an approved spot Bitcoin ETF, U.S. investors have been left with no choice but to invest in products like the Grayscale Bitcoin Trust (GBTC), which trades at a significant discount to the price of Bitcoin and charges high fees.
According to YCharts, GBTC’s net asset value (NAV) discount currently stands at 30% compared to Bitcoin’s price. Additionally, the annual fee for GBTC is 2%, significantly higher than the industry average of 0.40% as reported by MorningStar. Winklevoss believes that the SEC’s refusal to approve spot Bitcoin ETFs has pushed U.S. investors towards offshore platforms that are “unlicensed and unregulated.” He specifically called out FTX, labeling it as “one of the largest financial frauds in modern history.”
Winklevoss called upon the SEC to reflect on its track record and focus on fulfilling its mandate of investor protection instead of overstepping its statutory power. He made these comments amidst a wave of companies filing, renewing, or amending their filings for spot Bitcoin ETFs. Companies such as BlackRock, Fidelity, WisdomTree, Invesco, Valkyrie, and ARK Invest have all expressed interest in launching such ETFs.
However, the SEC has reportedly deemed some of the filings for spot ETFs as inadequate and lacking clarity and comprehensiveness. The regulator has requested fund managers to resubmit their filings after clarifying their language.
Meanwhile, Gemini, co-founded by Winklevoss, is currently engaged in a protracted court mediation with Genesis, a subsidiary of Digital Currency Group (DCG). The court dispute also involves Grayscale, the manager for GBTC. Additionally, Gemini is facing charges filed by the SEC.
With the ongoing debates and legal battles surrounding spot Bitcoin ETFs, the future of these investment vehicles in the U.S. market remains uncertain. Investors and industry participants continue to urge regulators to provide clarity and a regulatory framework for these products to ensure investor protection while promoting innovation in the cryptocurrency space.
Source link
