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

Gemini co-founder Cameron Winklevoss says that for the past decade, the United States securities regulator has forced investors into “toxic” and “unregulated” crypto products.

On July 2, the Winklevoss Twins Slammed The US Securities and Exchange Commission (SEC) has consistently denied spot bitcoin exchange-traded funds, noting that it has now been 10 years since the twins first applied to have their ETF approved by the regulator. .

“(The SEC’s) refusal to approve these products for a decade has been an utter disaster for US investors and shows how the SEC is a failed regulator.”

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 huge discount to the price of bitcoin and charges “astronomical” fees.

Today it’s been 10 years @tyler And I applied for the First Place Bitcoin ETF. @SECGovA decade of refusing to approve these products has been an utter disaster for US investors and shows how unsuccessful the SEC is as a regulator. here’s why:

-“reserve”… pic.twitter.com/xmK1xo1iX8

— Cameron Winklevoss (@Cameron) 2 July 2023

GBTC’s NAV discount to the price of bitcoin is currently 30%, According For YCharts, while the GBTC annual fee is 2% at the latest as of July 2022, while the average is 0.40% Study From financial services firm Morningstar.

Winklevoss also believes the denial is causing 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 focus on fulfilling its mandate of investor protection, rather than trying to abdicate its statutory power and act like a gatekeeper to economic life,” he added.

Connected: Cathy Wood’s ARK Reportedly ‘First in Line’ for Spot Bitcoin ETF

Winklevoss’ comments come as several companies, including BlackRock, Fidelity, WisdomTree, Invesco, Valkyrie and ARK Invest, have recently updated or amended their filings for spot bitcoin ETFs.

The SEC has reportedly said that some filings for spot ETFs are inadequate and not “sufficiently clear and comprehensive.” The regulator has asked fund managers to clarify their filing language and resubmit.

Meanwhile, Gemini is in a protracted court arbitration with Genesis, a subsidiary of Digital Currency Group (DCG), which also owns Grayscale – the manager of GBTC. The exchange is also in court over SEC charges.

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