GrayScale has been working hard on getting approval for BTC ETF approval, and its CEO recently discussed the benefits associated with this. Michael Sonnenshein believes that Bitcoin futures will be approved by the SEC soon and that this could be a good sign for the cryptocurrency market. The reasons why the ETFs have been so successful and how they relate to bitcoin are discussed in a thread he started on Twitter.
— Sonnenshein (@Sonnenshein) June 21, 2022
What are the Benefits?
As a result, GrayScale’s CEO firmly believes that the SEC’s increasingly comfortable stance on Bitcoin and cryptocurrencies, broadly defined, is supported by the SEC’s approval of each and every Bitcoin-linked investment product. A similar statement can be made about $BITI, despite its being a reversible bitcoin exposure. It is possible to access bitcoin directly or invest in it by purchasing an ETF that tracks bitcoins without actually owning bitcoins themselves.
To respond to the increasing demand for bitcoins, bitcoin exchange-traded funds (ETFs) were established in 2011 to allow investors to trade bitcoins just like they would trade stocks. In this day and age, when cryptocurrency has become so popular, and its price has risen to over tens of thousands of dollars, an average investor would have trouble affording one bitcoin. In other words, an organization that holds bitcoin funds would offer an ETF for trading on an exchange for investors to trade on.
Despite their concerns regarding the market maturity of the underlying markets and the security of their transactions, regulators have denied spot Bitcoin ETFs on a number of occasions because of their concerns about the possibility of fraud and manipulation. Sonnenshein talks about this challenge by asking:
“How could one interpret $BITI coming to market as anything other than further acknowledgment of #Bitcoin’s maturity?”
GreyScale’s CEO believes that Bitcoin’s price discovery is safeguarded not only by a healthy two-sided market that affords exposure to a wide range of long products but also by a derivatives market robust enough to give access to short positions by retail investors.
The company has recently hired Donald B. Verrilli as an additional legal counsel. This appointment was made a few weeks ago. In the coming months, the company aims to win the SEC’s approval and finally convert its Bitcoin trust into an exchange-traded fund with his help. It is believed that Verrilli will be a fantastic addition to Grayscale’طs legal expert team as the company continues to work towards launching a spot Bitcoin ETF in the near future.
We will have to wait and see if GrayScale’s PR and legal efforts will lead to positive results and a positive impact on the Bitcoin ecosystem and the approval of BTC ETF.