Grayscale CEO Michael Sonnenshein urged regulators to approve spot Bitcoin exchange-traded fund (ETF) choices in an announcement on Feb. 5.
Sonnenshein wrote in a publish on X:
“… I believe it’s by no means been extra necessary … to advocate for the event of a sturdy listed choices marketplace for spot Bitcoin ETFs. Though GBTC has been within the public market since 2015, it was by no means accompanied by listed choices, as they aren’t a function of the OTC Market.”
Elsewhere, he mentioned that comparable merchandise must be handled equally, writing:
“The identical manner bitcoin futures ETFs and spot bitcoin ETFs ought to (and now are) handled the identical, so too ought to listed choices on these merchandise.”
He famous that the New York Inventory Alternate (NYSE) and different nationwide securities exchanges have lately submitted filings that may enable choices buying and selling on commodity-based ETFs like Grayscale’s personal GBTC fund.
The SEC should now take these purposes into consideration. Sonnenshein famous that though Bitcoin futures ETF choices have been shortly launched by way of an automated approval course of, spot Bitcoin ETF choices should undergo an extended approval course of just like the method for every underlying fund.
Sonnenshein referred to as choices “good for buyers.” He mentioned that choices assist value discovery, enable for higher navigation of market circumstances, and generate revenue. He famous that this is applicable to each retail buyers and institutional buyers alike.
SEC might resolve on choices earlier than yr finish
The U.S. Securities and Alternate Fee is at the moment within the strategy of dealing with numerous spot Bitcoin ETF purposes. The company opened feedback on BlackRock’s Nasdaq-listed fund and numerous Cboe BZX-listed funds on Jan. 19.
Bloomberg ETF analyst James Seyffart has advised that a call might happen between February and September 2024. Separate stories from Reuters recommend {that a} choice might happen as late as December 2024; that later date is partly because of the risk that each the SEC and the Commodity Futures Buying and selling Fee (CFTC) might want to grant approval.
The SEC in any other case accredited numerous underlying spot Bitcoin ETFs on Jan. 10. Grayscale was considered one of a number of companies to achieve approval at the moment.
Grayscale’s GBTC ETF, transformed from an current fund, had $20.5 billion in property beneath administration (AUM) as of Feb. 2. This makes it the spot Bitcoin largest ETF at current, although it additionally experiences appreciable outflows.
