Ark Invest’s Cathie Wood Blames Gary Gensler for Obstructing Proposed Spot Bitcoin ETFs and Not SEC

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October 23, 2023

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Influential investor Cathie Wood, CEO of Ark Invest, said that the researchers at the US Securities and Exchange Commission (SEC) are “really good”, and it’s the agency’s Chair Gary Gensler who is standing on the way of spot Bitcoin exchange-traded funds (ETFs).

Speaking with Coin Stories podcaster Natalie Brunell on Monday, Wood stressed the merits of Bitcoin (BTC) and that the SEC “really understands” the cryptocurrency.

I asked Cathie Wood about what the SEC has been doing with the spot #Bitcoin ETF applications.

Below is her very candid answer.

Full interview: https://t.co/VRbi7ArZCQ pic.twitter.com/TbKIKg7qqk

— Natalie Brunell ⚡️ (@natbrunell) October 16, 2023

“For me, the disconnect is, they [SEC staff] know so much, and they are so good that I believe this was much more Gary Gensler standing in the way. I don’t know for sure because they could never say something like that.”

She also raised the question of why Gensler allowed Bitcoin Futures ETFs which “involves counterparty risks” and not a Bitcoin ETF, which does not have such risks.

“In fact, ours (BTC ETF) would be backed by Bitcoin, one-for-one, in cold storage at Coinbase. That’s why Grayscale has won its case. It is that argument.”

Wood noted that Gensler’s “personal Vietnam” is coming to haunt him. “I do think the SEC is moving now,” she added.

The businesswoman was optimistic that the regulator would not just approve one Bitcoin ETF, but approve “a group of them.” She also added that her company hopes that much research is given to educate people, which is one of the company’s important values.

“We hope that helps us as we hopefully be one of those approved,” Wood said.

Possibility of Multiple Bitcoin ETF Approvals

In another interview with CNBC Monday, Wood said that the SEC’s inquiries signified a “change in behavior” which had raised hopes among industry players for a possible Bitcoin ETF approval.

“I think many people think the fact that the SEC chose to ask questions is a change in behavior and therefore I do think hopes are rising that one or a number of Bitcoin ETFs will be approved.”

In September, lawmakers pressed the SEC Chair to allow spot Bitcoin ETFs “immediately.” A group of Republican and Democratic Reps. urged Gensler to urgently allow the listing of a spot BTC ETF, arguing that a regulated product would increase investor protection by making access to Bitcoin more transparent and safer.

ARK 21Shares Bitcoin ETF re-filed its application earlier this year after the SEC rebuffed two previous filings.