Cameron Winklevoss, the co-founder of Gemini, believes that over the last decade or so, the US SEC has been solely responsible for inducting investors into toxic crypto products and services which are also unregulated.
On the 2nd of July, the Winklevoss twin lambasted the Securities and Exchange Commission in the country for its constant refusal of spot Bitcoin exchange-traded fund, mentioning that it has been close to 10 years since the twins first filed their own proforma for an ETF to be approved by the regulator. Winklevoss argued that without the approved spot Bitcoin ETF, the investors in the country have been shunted towards toxic crypto products like Grayscale Bitcoin Trust which has been trading at a huge discount to the price of Bitcoin- and further charges astronomical fees.
Winklevoss Has Blamed SEC For Toxic Crypto Culture
The net asset value discount of GBTC is at 30%- when compared to the price of BTC, according to Y charts. The annual fee of the GBTC is 2%, compared to an average of 0.40% according to the latest study from June 2022 from Morningstar, the financial services firm.
Winklevoss is of the opinion that this refusal has led to the investors in the country moving to unlicensed and unregulated offshore platforms- including FTX- which he considers to be one of the largest financial frauds in modern history. Winklevoss didn’t mince his words, as he mentioned that it was high time for the SEC to reflect on its dismal record, and rather than overstepping its boundaries, it will focus on fulfilling its mandate protection of the investor.
The SEC, on their part, has routinely mentioned that the filings for the spot ETFs are quite inadequate and not entirely comprehensive or clear. The regulator has also asked the fund managers to resubmit after clarifying their filings language.