Arch Invest’s Cathy Wood Blames Gary Gensler, Not the SEC, for Blocking Planned Spot Bitcoin ETFs

Influential investor Cathy Wood, CEO of Arc Invest, said investigators at the US Securities and Exchange Commission (SEC) are “very good” and that the agency's chairman, Gary Gensler, is standing by for bitcoin. (ETF)

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

“For me, they are the disconnect. [SEC staff] They know a lot, and they're so good that I believe this is more Gary Gensler standing in the way. I don't know for sure because they would never say such a thing.

She also questioned why Gensler approved Bitcoin Futures ETFs, which “involve collateral risks” and not Bitcoin ETFs, which have no such risks.

“In fact, our (BTC ETF) is backed, one-to-one, by Bitcoin in Coinbase's cold storage. That's why grayscale won the case. That's a debate.”

Wood described Gensler's “personal Vietnam” as coming to haunt him. “I think the SEC is moving now,” she added.

The businesswoman was optimistic that the regulator would approve “a group” of them, not just one Bitcoin ETF. She said her company hopes to do more research to educate people, which is one of the company's core values.

“Hopefully that will help us hopefully be one of the approved ones,” Wood said.

The possibility of multiple Bitcoin ETF approvals

In another interview with CNBC on Monday, Wood said that the SEC's inquiries indicate a “change in behavior” among industry players, raising hopes for the possible approval of a Bitcoin ETF.

“A lot of people think that the SEC choosing to ask questions is a change in behavior and so I think there is growing hope that one or more Bitcoin ETFs will be approved.”

In September, lawmakers pressured the SEC chairman to allow Bitcoin ETFs to become available “immediately.” A group of Republican and Democratic representatives urged Gensler to immediately register a spot BTC ETF, saying the regulated product would increase investor protection by making access to bitcoin more transparent and secure.

ARK 21Shares Bitcoin ETF resubmitted its application earlier this year after the SEC rejected two previous filings.