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The head of Grayscale called the approval of the spot Bitcoin-ETF in the US a matter of time


The head of Grayscale Investments, Michael Sonnenshine, in an interview with CNBC, expressed optimism about the possible approval by the US Securities and Exchange Commission (SEC) of a spot bitcoin-ETFs.

In early April, the regulator allowed the launch of an exchange-traded fund based on futures for the first cryptocurrency from the provider Teucrium. The application complied with the provisions of the Securities and Exchange Act of 1933, not the Investment Company Act of 1940.

Earlier, Commission Chairman Gary Gensler said that it is the latter document that provides for more reliable measures to protect investors.

“From the point of view of the SEC, products Act 40 there were several protection measures that the products do not have Act 33. But never did these funds take into account the concerns of the Commission regarding bitcoin and the possibility of fraud or manipulation, ”said Sonnenschein.

Some of the safeguards include independent advice, accounting and storage rules, he said.

“In our opinion, the question is whenbut not if […]. If the SEC cannot view two identical issues – a futures ETF and a spot ETF – through the same lens, then this, in fact, is a potential violation of the Administrative Procedure Act, ”added the head of the company.

The SEC has yet to approve any application to launch a spot Bitcoin ETF. At the same time, the agency allowed the launch of exchange-traded funds based on futures for the first cryptocurrency from VanEck, Valkyrie Investments and ProShares.

Grayscale Investments named the transformation of a bitcoin trust into an ETF as a top priority. The company sent the relevant application to the regulator in October 2021. In February 2022, the SEC delayed its decision.

The company admitted that the Commission violated the law when approving bitcoin futures ETFs, and declared its readiness to sue the department in case of refusal to convert GBTC into ETFs.

As a reminder, most of the financial advisers polled by Nasdaq approved investments in a spot crypto ETF.

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My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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