Grayscale Investments Working with SEC on Bitcoin ETF Conversion
According to Grayscale Investments CEO Michael Sonnenshein, the company is actively engaging with the U.S. Securities and Exchange Commission (SEC) in an effort to convert its flagship bitcoin trust into a spot bitcoin exchange-traded fund (ETF). Sonnenshein discussed this development at DC Fintech Week, revealing that despite the SEC’s initial rejection of the application, a recent court order has prompted the regulator to reconsider.
The executive emphasized that Grayscale has a significant advantage over other spot bitcoin ETF applicants due to the company’s status as a well-known seasoned issuer. This means Grayscale can file a simplified registration statement, compared to other applicants who must submit more comprehensive documentation.
Grayscale’s Competitive Edge
Sonnenshein highlighted that other spot bitcoin ETF applicants lack a product, investors, or trading history, unlike Grayscale. The company is confident that it will overcome any remaining hurdles and provide its investors with the anticipated ETF.
The CEO also expressed readiness for competition, stating that Grayscale has long been prepared for multiple spot bitcoin products in the market.
Expectations and Predictions
SEC Chairman Gary Gensler mentioned that the regulator is evaluating eight to 10 spot bitcoin ETF applications. Analysts anticipate the approval of several spot bitcoin ETFs simultaneously early next year. Global asset management firm Alliance Bernstein predicts that the price of bitcoin will reach $150,000 by 2025 and expects imminent approvals of spot bitcoin ETFs.
Hot Take: Grayscale’s Optimism
Grayscale Investments remains optimistic about converting its flagship bitcoin trust into a spot bitcoin exchange-traded fund (ETF). With constructive engagement with the SEC and confidence in its competitive edge, the company is poised for success in this evolving landscape.
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