United States Securities and Exchange Commission (SEC) Chair Gary Gensler has emphasized that the agency's approval of 11 spot Bitcoin exchange-traded funds (ETFs) on January 10 does not constitute an endorsement of Bitcoin.

Gensler wrote in a statement just an hour after the historic approvals:“While we approved the listing and trading of certain spot Bitcoin ETP shares today, we did not approve or endorse Bitcoin. Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto”

Gensler reiterated the SEC's stance that Bitcoin is a "speculative, volatile asset" that is primarily used for illicit activities, such as ransomware, money laundering, and terrorist financing. He contrasted Bitcoin with precious metals like gold, silver, and platinum, which have consumer and industrial uses. Earlier on Monday, Gensler posted a thread on the dangers of investing in cryptocurrencies, highlighting that they are "exceptionally risky" and "often volatile.”

However, he emphasized that the SEC remains "merit neutral" and does not take a view on particular companies, investments, or the assets underlying an exchange-traded product. Gensler also cautioned investors about the risks associated with Bitcoin and products whose value is tied to crypto. He reiterated the SEC's view that the "vast majority" of crypto assets are investment contracts and should fall under the regulatory jurisdiction of the SEC.

Gensler's statement underscores the agency's ongoing concerns about Bitcoin and the broader crypto market, as investors now turn their attention to the spot Ethereum ETF applications filed by BlackRock and other potential issuers.

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