Community reacts after SEC’s Gensler affirms BTC’s commodity status

After confirming that Bitcoin (BTC), is a commodity, Gary Gensler, Chairman of Securities and Exchange Commission, got Crypto Twitter riled on Monday. Its impact on Grayscales’ Bitcoin ETF was questioned, as well as why Ethereum wasn’t mentioned.

Jim Cramer, CNBC’s Squawk Box, on Monday, June 27. The SEC chair stated that while many crypto-financial investments have the key attribute security, Bitcoin was the only one he felt comfortable publically labeling as a commodity.

“Some, like Bitcoin — that’s all I’m going say, because I’m not going talk about any of these tokens. However, my predecessors and other have stated they’re a commodities.”

Grayscale Bitcoin ETF

These remarks sparked chatter about Grayscale’s application to convert the Bitcoin Trust into an exchange-traded spot fund (ETF). The SEC is expected to make a decision on July 6.

James Seyffart is an ETF analyst at Bloomberg Intelligence. He told his 19,300 followers on Twitter that Gensler’s comments are positive for Bitcoin but it might not be enough for Grayscale to approve Grayscale’s Bitcoin-spot ETF next week.

Gensler has been doing this for a while, but it is a positive IMO. This is not enough to allow $GBTC to be converted into a spot #Bitcoin exchangeable fund (ETF). We believe the odds of SEC approval next week or this week are close to zero. https://t.co/mvRnkajGdd
— James Seyffart (@JSeyff) June 27, 2022

Eric Balchunas is a Bloomberg senior ETF analyst. He made similar comments and noted that Grayscale’s GBTC was only 0.5% likely to be converted to an ETF.

ETH is not mentioned.

Crypto Twitter also noted Gensler’s refusal to mention whether he put Ethereum (ETH) into the same commodities boat despite both the regulator and Commodity Futures Trading Commissions (CTFCs) having previously agreed that the asset was a commodity like Bitcoin.

Are there any thoughts as to why Gensler didn’t mention Ethereum today? https://t.co/GjN5so63O3 #ethereum
— swankyfinance.eth (@swankyfinance) June 28, 2022

Positive things about Bitcoin

Gensler’s views about Bitcoin are positive, however.

Michael Saylor, a Bitcoin bull, shared the video with his 2.5 million followers on Twitter. He said that Bitcoin is an essential treasury reserve asset which will allow governments to support it as digital assets to grow the economy.

#Bitcoin can be described as a commodity. This is vital for any treasury reserve asset. This allows governments, politicians, and institutions to support bitcoin as technology & digital asset, to grow the economy, extend property rights and freedom, and to help others. pic.twitter.com/b4WmdSRilb
— Michael Saylor (@saylor) June 27, 2022

Eric Weiss, the founder of Blockchain Investment Group, noted on Twitter that Gensler was the second SEC chair who declared Bitcoin a commodity. This makes it almost impossible to alter this classification in the future.

Related: Google users believe BTC is dead — 5 things you should know about Bitcoin this week

The positive news about Bitcoin led to another decline in its price, dropping from $21,478 at the peak of 24 hours to $20,635 at the writing.

Ethereum fell from $1,234 at 24 hours, to $1,171 at the writing time, as bears maintain their grip on markets.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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