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 submit on X:
“… I believe it’s by no means been extra essential … to advocate for the event of a strong 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 characteristic of the OTC Market.”
Elsewhere, he mentioned that related merchandise needs to be handled equally, writing:
“The identical means 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 might enable choices buying and selling on commodity-based ETFs like Grayscale’s personal GBTC fund.
The SEC should now take these functions into consideration. Sonnenshein famous that though Bitcoin futures ETF choices had been rapidly launched by means 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 known as choices “good for buyers.” He mentioned that choices help value discovery, enable for higher navigation of market situations, and generate earnings. He famous that this is applicable to each retail buyers and institutional buyers alike.
SEC could determine on choices earlier than yr finish
The U.S. Securities and Alternate Fee is at present within the means of dealing with numerous spot Bitcoin ETF functions. 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 instructed that a choice may happen between February and September 2024. Separate studies from Reuters counsel {that a} resolution may happen as late as December 2024; that later date is partly because of the chance 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 certainly one of a number of companies to realize approval at the moment.
Grayscale’s GBTC ETF, transformed from an present fund, had $20.5 billion in belongings beneath administration (AUM) as of Feb. 2. This makes it the spot Bitcoin largest ETF at current, although it additionally experiences appreciable outflows.