SEC pushed investors into ‘toxic’ crypto products and FTX: Winklevoss

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Over the past decade, the US securities regulator has forced investors into adopting toxic and unregulated crypto products, says Gemini co-founder Cameron Winklevoss.

On July 2, the Winklevoss twin criticized the United States Securities and Exchange Commission’s (SEC) consistent denial of spot Bitcoin exchange-traded funds, noting that it has now been 10 years since the twins first filed. the approval of their own ETF by the regulator.

THE [SEC’s] the decade-long refusal to approve these products has been a total disaster for US investors and demonstrates what a failed regulator the SEC is.

Winklevoss argued that without an approved spot Bitcoin ETF, US investors have been pushed into toxic products like the Grayscale Bitcoin Trust (GBTC) which trades at a massive discount “to the price of Bitcoin and charges astronomical fees. .

Today marks 10 years since @tyler and I filed for the #1 Bitcoin ETF. @SECGov’s refusal to approve these products for a decade has been a complete and utter disaster for US investors and demonstrates what a failed regulator the SEC is. Here’s why:

-“protected” pic.twitter.com/xmK1xo1iX8

Cameron Winklevoss (@cameron) July 2, 2023

According to YCharts, GBTC’s net asset value discount is currently 30% from the Bitcoin price, while GBTC’s annual fee is 2%, compared to an average of 0.40%, according to the latest July study. 2022 from financial services firm MorningStar.

Winklevoss also believes the denial has led US investors to turn to unlicensed and unregulated offshore platforms, including FTX, which he called one of the biggest financial frauds in modern history.

Perhaps the SEC will reflect on its dismal record and instead of overstepping its statutory authority and trying to act as the guardian of economic life, it will focus on fulfilling its mandate to protect investors, did he declare.

Related: Cathie Woods ARK reportedly first in line for spot Bitcoin ETF

Winklevoss’ comments come as a slew of companies have recently made, renewed or changed their deposits for a spot Bitcoin ETF, including BlackRock, Fidelity, WisdomTree, Invesco, Valkryie and ARK Invest.

The SEC has reportedly said some of the filings for cash ETFs are inadequate and not sufficiently clear and complete. The regulator asked fund managers to resubmit after clarifying the language of their filings.

Meanwhile, Gemini is in a prolonged legal mediation with Genesis, a subsidiary of Digital Currency Group (DCG) which also owns Grayscale, the manager of the GBTC. The exchange is also in court on SEC charges.

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