- The comments made about new SEC chair by Bank of Singapore chief economist Mansoor Mohi-uddin aren’t bullish on a Bitcoin ETF
- Mohi-uddin said that a Bitcoin ETF would be “an important milestone”
- His statements have been taken out of context and used to prop up a non-existent bullish outlook
Several cryptocurrency news outlets got all excited over the weekend due to comments made by Bank of Singapore chief economist Mansoor Mohi-uddin who they claim suggested a Bitcoin ETF was more likely with Gary Gensler being appointed the new Securities and Exchange Commission (SEC) chief. However, the comments themselves don’t bear this out, with their potency seemingly put down solely to Gensler’s teaching history rather than anything that was actually said.
Bitcoin ETF “Important Milestone”
The comments that got the news outlets all worked up were reported by the South China Morning Post, whose own gloss on the story seemed to feed the narrative. They reported on Sunday that Mohi-uddin’s comments suggested that the SEC under Gensler may “alter its view” on the prospect of a Bitcoin ETF, using the following quote to back up the claim:
An important milestone here would be if the SEC approved an exchange-traded fund (ETF)
for Bitcoin or another cryptocurrency. This would offer a trustworthy, reliable investment vehicle, allow fresh participants to enter digital currencies, improve liquidity, lower volatility and help deal with reputational risks.
We may be being dense here, but it seems to us that there is nothing overtly positive in this statement – it’s just an explanation of what a Bitcoin ETF would bring to the space and that it would be an “important milestone”. Well, yes, it would, but that hardly moves us on from where we were.
Gensler Background Feeds the Narrative
The positivity may have come from Mohi-uddin also acknowledging Gensler’s background, which includes teaching on the subject of blockchain, digital assets, and fintech at MIT Sloan. However, rather than being a benefit to blockchain and cryptocurrency this may well have been done with a view to progressing with a Central Bank Digital Currency, which the US is way behind on compared to other countries.