Grayscale CEO Michael Sonnenshein urged regulators to approve spot Bitcoin exchange-traded fund (ETF) choices in a press release on Feb. 5.
Sonnenshein wrote in a publish on X:
“… I believe it’s by no means been extra essential … 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 related merchandise must be handled equally, writing:
“The identical method 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 Trade (NYSE) and different nationwide securities exchanges have just lately submitted filings that may permit 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 had been rapidly launched by 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 traders.” He mentioned that choices assist value discovery, permit for higher navigation of market circumstances, and generate earnings. He famous that this is applicable to each retail traders and institutional traders alike.
SEC might determine on choices earlier than yr finish
The U.S. Securities and Trade 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 suggested that a call might happen between February and September 2024. Separate studies from Reuters recommend {that a} determination might happen as late as December 2024; that later date is partly as a result of 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 authorised numerous underlying spot Bitcoin ETFs on Jan. 10. Grayscale was certainly one of a number of corporations to achieve approval at the moment.
Grayscale’s GBTC ETF, transformed from an present fund, had $20.5 billion in property below administration (AUM) as of Feb. 2. This makes it the spot Bitcoin largest ETF at current, although it additionally experiences appreciable outflows.
