If there is one thing Gensler, and the SEC are, it's consistent. Continuing in the string of spot Bitcoin ETF rejections is Cathie Wood's Ark 21Shares. The SEC stated on the application rejection “The Commission concludes that BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Exchange Act Section 6(b)(5), and in particular, the requirement that the rules of a national securities exchange be ‘designed to prevent fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest.” The SEC continues to cite "investor's protections" in their refusal to approve a spot Bitcoin ETF thus far. Despite this, other Bitcoin investment vehicles like Grayscale's GBTC product has significantly underperformed when compared to spot Bitcoin since 2017
Reported by Dylan LeClair on Twitter, GBTC has returned -15% since 2017, where as Bitcoin itself as returned 147%. The continued excuse of "investor protections" doesn't quite seem to add up when the numbers are clear that a spot product would be a far more advantageous product for investors. When we may get that product remains to be seen, but Grayscale has mentioned they would consider seeking legal action if applications continue to be rejected.