Bitcoin Spot ETF Is Inevitable – Says Grayscale Boss Michael Sonnenshein
Welcome back to the Tribe! In this post we dive into the Bitcoin Spot ETF news!
Nothing should be considered investment or financial advice. Enjoy the ride!
Bitcoin Spot ETF
Micheal Sonnenshein, the chief operating officer of major Bitcoin fund and digital asset management company Grayscale Investments said that a BTC spot exchange traded fund (ETF) approved by the U.S. Securities and Exchange Commission (SEC) could come sooner rather than later.
The SEC has so far rejected every application for Bitcoin Spot ETF citing doubts regarding severe market manipulation and money fraud. However, a recently regulated BTC Futures ETF approved under a Securities law signals hope as institutions continue to push for a similar verdict regarding a Bitcoin ETF from the SEC.
Grayscale Boss Thinks SEC Will Approve A Bitcoin Spot ETF Soon
In a recent interview with news network CNBC, Michael Sonnenshein, the CEO of Grayscale Investments said a possible Bitcoin Exchange Traded Fund could be imminent considering recent developments.
According to Sonnenshein, the SEC approving a BTC spot ETF in the near future is set to happen. Citing the link between Bitcoin spot markets and Bitcoin futures markets, Sonnenshein opined that greenlighting a spot ETF is only natural as futures markets derive value from spot liquidity.
The Grayscale Boss highlighted that a number of futures funds already exist within the U.S. jurisdictions. Some of these funds included the recently approved Teucrium BTC Futures ETF which gained the SEC’s regulatory nod of approval at the start of April 2022.
In previous cases, an Investments Company act of 1940 has been leveraged in the approval process for a number of BTC ETFs. However, details from the application revealed that Teucrium filed for approval under the Securities Act of 1933.
The SEC has since maintained that the 33 Act fails to provide sufficient protection against illicit activities in the market. However, with the recent approval of Teucriums ETF under the very same securities law, Sonnenshein opined that doubts built around the Act’s supposed loopholes have been rendered redundant.
Grayscale CEO Interview
In the interview with CNBC, the Grayscale CEO said that:
“From the SEC standpoint, there were several protections that 40 Act products have that 33 products don’t have, but never ever did those protections address the SEC’s concern over the underlying bitcoin market and the potential for fraud or manipulation.
So the fact that they’ve now evolved their thinking and approved a 33 Act product with Teucrium really invalidates that argument and talks to the linkage between the Bitcoin futures and the underlying Bitcoin spot markets that give the futures contracts their value..”
As of the time of writing this report, Grayscale Investment has several funds and indexes that facilitate trading and tracking a plethora of digital assets. However, due to the SEC’s constant application rejection, a Bitcoin Spot ETF is yet to join the ranks of the variety of funds offered by the company.
Referencing recent developments surrounding Teucrium, Sonneshein suggested that the company could sue the SEC if the marker supervisor fails to approve its next Bitcoin Spot ETF filing. The Grayscale official said such a decision from the U.S. regulator would be a violation of the Administrative Procedure Act since the SEC has already approved a Futures ETF under the same Act 33.
Other News – Update On The Ronin Hackers
Lazarus, a North Korean-based cybercrime and anonymous hacker organization has been linked to the biggest exploit in decentralized finance (DeFi) history – the $600 million hack on the Ronin Sidechain protocol.
U.S. Authorities and blockchain security outfit Chainalysis have both published reports saying that the notorious group is linked with the attack. Following the news, crypto proponents surmised that chances of recovery are slim and that funds could be lost forever.
Bitcoin Spot ETF News
Thanks for reading our post on the Bitcoin Spot ETF news. An ETF has been a long awaited triumph for the crypto market, lets see if we can soon get one step closer to achieving that goal.
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