CEHV Partner Warns of Uncertain Future After Genesis Closure

Adam Cochran’s Perspective on Spot Bitcoin ETF Race

Many analysts are speculating the outcomes of the Spot Bitcoin ETF race, and in a Nov. 8 post on X, Adam Cochran, partner at CEHV, shares his perspective. According to Cochran, while odds are good for other ETFs, the Digital Currency Group (DCG) and specifically Grayscale may have a tough road ahead due to various challenges.

Effects of Genesis’ Downfall

Cochran suggests that DCG CEO Barry Silbert’s situation is a result of several factors, including the Genesis shutdown, lack of updates regarding GBTC conversion following a court case, absence of price arbitrage opportunities on smaller trusts, ongoing discussions surrounding a potential fraud investigation, and an ongoing legal case with Gemini. All these factors contribute to an atmosphere of uncertainty and concern.

In a follow-up post in his thread, Cochran shares that although there remains the possibility of obtaining a GBTC conversion, the likelihood of GBTC gaining approval does not necessarily insulate Silbert and Grayscale from broader challenges.

Continuing the Race

Co-founder of Valkyrie Investments Steven McClurg shared earlier that the SEC is in a position to grant approval to several spot Bitcoin ETF applications in November 2023. In the evaluation, McClurg notes that companies have effectively addressed concerns related to market manipulation raised by the regulator. Therefore, while the SEC may issue another round of comments to the entities that submitted ETF applications in the coming one to three weeks, an approval of 19b-4 rule changes is likely shortly after.

Hot Take: The Future of Spot Bitcoin ETFs

The spot Bitcoin ETF race is heating up as analysts and industry experts share their perspectives. The challenges faced by DCG and Grayscale are highlighted by Adam Cochran, while Steven McClurg provides insight into the potential approval process for spot Bitcoin ETF applications. As the race continues, it remains to be seen how these developments will impact the future of spot Bitcoin ETFs and their broader implications for the crypto market.