Gary Gensler, Chairman of the Securities and Exchange Commission, recently explained why the regulator approved the first Bitcoin futures ETF.

He believes that the “ProShares ETF” falls under current investor protection more easily than ETFs that track price in real time.

However, many bitcoin enthusiasts and other crypto proponents are still opposed to bitcoin futures funds, wishing they would approve spot bitcoin ETFs.

Protecting ETF Futures Users:

Gensler shared his thoughts in a recent interview with CNBCDiscussing the approval of the “ProShares Bitcoin Strategy ETF,” the interviewer asked why the chairman of the board gave the green light to the Bitcoin futures ETF before the spot Bitcoin ETF.

Read:Swiss financial regulator approves launch of first crypto fund

Gensler replied that the latest approval was in line with the SEC’s goals.

He explained that while they welcome technical innovation, they need to bring projects into the perimeter of investor protection.

The Chairman said:

I think that in the official sector we should be technically neutral, but not neutral in regulatory situations.

He also mentioned that bitcoin futures contracts have already been supervised by the CFTC for four years.

The CFTC oversees the Chicago Mercantile Exchange (CME), which operates under the Investment Corporation Act of 1940.

This provides protection for investors from familiar market manipulation.

In a subsequent ProShares prospectus released last week, the company submitted its application for approval of a Bitcoin ETF under the 1940 Act.

Gensler explained that Bitcoin remains a highly speculative and volatile asset class, but nonetheless the CFTC’s regulatory oversight has valued it.

Are futures ETFs a good choice for investors?

Some influential voices in the crypto community have criticized the Securities and Exchange Commission (SEC) for approving a bitcoin futures ETF instead of a spot fund.

Read:SEC threatens to sue Coinbase over high-interest crypto product

Global Macro Investor CEO Raul Pal has criticized the recently approved product for taking huge amounts of investor profits in management fees.

He described it as a suboptimal solution, compared to spot trading.

Read:Report: More than 10 new cryptocurrencies launched daily

He described the new fund as a solution that hurts retail investors more than it helps them.

Well-known voices in the crypto arena, including Willie Wu and Preston Beach, have also been vocal that there are excessive fees associated with the ProShares ETF that will create net selling pressure on Bitcoin, driving its price down.

Soon after ProShares agreed, Grayscale applied to convert its bitcoin fund into a publicly traded bitcoin market ETF.

There is still no indication of its approval or the approval of other bitcoin-related spot ETFs.

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See how the first Bitcoin futures ETF performed on its first day