Grayscale CEO Urges Simultaneous Approval of Spot Bitcoin ETFs
Grayscale CEO Michael Sonnenshein believes that the Securities and Exchange Commission (SEC) should approve spot Bitcoin exchange-traded funds (ETFs) at the same time. According to Sonnenshein, this approach would create a fair playing field for all market participants. He expressed these views during a recent interview with Bloomberg TV. Sonnenshein also stated that Grayscale is ready to list the Grayscale Bitcoin Trust (GBTC) as an ETF and would lower the expense ratio once it starts trading as an ETF.
Sonnenshein Concerned About Delaying Grayscale’s ETF
Sonnenshein voiced concerns about potential negative consequences if the SEC were to deny Grayscale the opportunity to launch its ETF simultaneously with other applicants. He emphasized that it would put investors in GBTC at a disadvantage. The race for a Bitcoin ETF has been ongoing for over a decade, and a critical deadline is approaching in early January. Market analysts speculate that if ARK and 21Shares receive regulatory approval, it could pave the way for other applicants as well.
In-Kind Versus Cash Redemptions
One of the current obstacles issuers face is deciding between in-kind and cash redemptions for Bitcoin ETFs. In-kind redemptions involve exchanging underlying securities with a market maker instead of using cash. However, regulators may be hesitant due to concerns about broker-dealers handling Bitcoin. Issuers are working on resolving this issue to align with regulatory expectations. Sonnenshein supports the in-kind redemption model, stating that it protects investors, creates liquidity, and offers a positive investor experience.
Hot Take: Simultaneous Approval Can Level the Field
Grayscale CEO Michael Sonnenshein believes that for spot Bitcoin ETFs to be approved, the SEC should do so simultaneously. This would ensure fairness and create a level playing field for all market participants. Sonnenshein expressed concerns about delaying Grayscale’s ETF, as it could disadvantage investors in GBTC. The race for a Bitcoin ETF is nearing its conclusion, with a critical deadline approaching in early January. The resolution of the in-kind versus cash redemption issue is also crucial for issuers. Sonnenshein supports the in-kind redemption model, stating that it protects investors and creates liquidity.
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