Grayscale CEO Urges SEC to Approve All Cryptocurrencies Simultaneously

Crypto Asset Manager Grayscale Urges SEC to Convert GBTC to ETF

Grayscale, a crypto asset manager, recently met with the US Securities and Exchange Commission (SEC) to discuss the final details of its proposed Bitcoin exchange-traded fund (ETF). The company’s CEO, Michael Sonnenshein, expressed concerns that investors in the Grayscale Bitcoin Trust (GBTC) would be at a disadvantage if the SEC does not allow the conversion of the trust to an ETF simultaneously with other approvals.

Equal Opportunity for All

Sonnenshein emphasized that the SEC should aim to create a level playing field and prevent any one company from gaining a first-mover advantage. Grayscale is among twelve firms seeking approval for a Bitcoin ETF, including industry giants like BlackRock and Fidelity.

Lowered ETF Fee and Investor Protection

Grayscale plans to reduce the ETF fee for GBTC once it begins trading. Currently, the trust has a higher fee compared to general ETFs. The company also advocates for in-kind redemptions over cash redemptions to protect investors. However, the SEC prefers cash redemptions to avoid broker-dealers handling bitcoin.

Latest Updates on ETFs

BlackRock recently amended its filing to comply with SEC requirements for cash creates. Grayscale had another meeting with the SEC this week to finalize its listing details. Meanwhile, Bitwise and Hashdex have already started their marketing campaigns for their respective ETFs.

Hot Take: Grayscale’s Push for Fairness and Investor Protection

Grayscale’s CEO is urging the SEC to allow the conversion of GBTC into an ETF alongside other approvals. This move aims to ensure equal opportunity among companies and prevent any one entity from gaining an unfair advantage. Grayscale also plans to lower the ETF fee for GBTC and advocates for in-kind redemptions to protect investors. The SEC’s preference for cash redemptions, however, poses a challenge. As the race for Bitcoin ETF approvals heats up, it remains to be seen how the SEC will address these concerns and make decisions that benefit both companies and investors.