What’s Next For Grayscale?
– The SEC now has 45 days to request a “rehearing” of the case.
– The court ruled that the SEC was being “arbitrary and capricious” in denying Grayscale’s conversion into a Bitcoin spot ETF.
– The SEC could approve Grayscale’s application, deny it based on another reason, or withdraw its prior approvals of Bitcoin futures ETFs.
– Grayscale believes that continuing to deny the application would violate the SEC’s mandate.
– Grayscale remains confident that its spot ETF will be approved.
Lower Fees Incoming
– Grayscale’s Bitcoin trust currently charges a 2% annual fee.
– When the trust is converted into an ETF, Grayscale plans to lower the fees.
– Critics argue that the current fee is “exorbitant” compared to other Bitcoin spot ETFs.
– Grayscale has attributed the high fees to legal costs.
– The CEO believes that the timing of the potential approval will not impact the fund’s performance.
Hot Take
Grayscale’s CEO, Michael Sonnhenshein, is optimistic about the future of the company’s Bitcoin trust and its potential conversion into an ETF. Despite the recent lawsuit against the SEC, Sonnhenshein believes that the court ruling in favor of Grayscale shows that the SEC’s justifications for denying the conversion were unreasonable. He also promises that once the trust becomes an ETF, Grayscale will lower its fees, which have been criticized as too high. Overall, Sonnhenshein is confident in the future of crypto as an asset class and believes that Grayscale’s spot ETF will be approved.
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