Grayscale CEO Urges Creation of Public Options Market to Support Bitcoin Spot ETFs

Grayscale CEO Calls for Public Options on Bitcoin Spot ETFs

Grayscale CEO Michael Sonnhenshein is urging the approval of public options on Bitcoin spot ETFs following the successful conversion of his company’s Bitcoin fund into one last month. Sonnhenshein emphasized the importance of advocating for the development of a robust listed options market for spot Bitcoin ETFs.

The Need For Bitcoin Options

Options are financial derivatives that give investors the right to buy or sell an underlying asset at a predetermined rate in the future. They are popular among traders as they allow trading without direct exposure to the asset itself. The US Securities and Exchange Commission (SEC) has already approved Bitcoin spot ETFs to trade on national securities exchanges. Now, exchanges like NYSE have filed forms to permit listed options on commodity-based ETFs, including Bitcoin spot ETFs.

Grayscale’s Influence on Bitcoin Spot ETFs

Bitcoin spot ETFs were approved two years after their futures counterparts due to concerns about market manipulation. However, Grayscale’s court victory against the SEC last year forced the agency to abandon its differential treatment of similar products. SEC Chair Gary Gensler has made it clear that while the agency approves both products, it does not endorse Bitcoin. Sonnhenshein argues that options will support Bitcoin’s price discovery and help investors navigate its unique market conditions.

Hot Take: Grayscale CEO Demands Public Options Market For Bitcoin Spot ETFs

Grayscale CEO Michael Sonnhenshein is calling for the approval of public options on Bitcoin spot ETFs in order to develop a robust listed options market for these products. He believes that options will support Bitcoin’s price discovery and provide creative solutions for investors in crypto’s unique market conditions. With the SEC’s approval of Bitcoin spot ETFs, it is crucial for the crypto and ETF communities to advocate for the development of options in order to further enhance the accessibility and functionality of these investment products.