The CEO and Founder of Vault Equity, Tad Park said in a Fox Business interview on Tuesday that SEC Chairman Gary Gensler is "very pro-Bitcoin" but also "a little bit confused" when it comes to cryptocurrency laws in the United States.
Tad Park, CEO, and Founder of Vault Equity expressed support for the US Securities Exchange Commission (SEC) in response to the regulator's refusal to approve an ETF that would directly track Bitcoin.
In a Fox Business interview on Tuesday, Park claimed that SEC head Gary Gensler is "really pro-Bitcoin" but is also "a little bit misunderstood" when it comes to crypto legislation in the United States.
Park explicitly mentioned the SEC's investor protection concerns, namely that crypto custody providers have yet to demonstrate to the agency that they can truly offer appropriate asset protection:
“I can say ‘I have a gold ETF or a Bitcoin ETF’ but I’m storing that gold in my basement. Is the SEC gonna allow that? Probably not. Unless companies can show they can custody it and address a lot of the issues Gansler specifically mentioned, it’s not gonna work.”
The CEO went on to state that "at least half" of the existing crypto ETF applications with the SEC are "not even genuine because they "do not address what Gary Gensler is stating."
Park noted that Vault Equity's crypto ETF does not give direct exposure to Bitcoin, but rather follows significant Bitcoin-correlated businesses such as MicroStrategy, Tesla, Twitter, Square, and Bitcoin mining firms such as Bitfarms.
“We try to get at what people are looking for, which is correlated to Bitcoin’s price movement. These companies are focusing on Bitcoin and get the majority of their income and revenues from Bitcoin. It makes sense that they tend to move along with Bitcoin’s price,” Park noted.
Vault Equity's Volt Crypto Industry Revolution and Tech ETF, approved on Oct. 1, follows "Bitcoin Industry Revolution Companies," a list of companies that hold a majority of their net assets in Bitcoin or receive a majority of their profits from Bitcoin mining, lending, or transactions.
A pure Bitcoin ETF has yet to be approved by the SEC. The Securities and Exchange Commission (SEC) extended the deadline for four Bitcoin ETFs, including Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Kryptoin Bitcoin ETF, on October 1. In August, SEC head Gensler hinted that the commission could be willing to approve Bitcoin futures ETF.