Grayscale CEO Michael Sonnenshein has requested regulators to approve a spot Bitcoin exchange-traded fund (ETF) possibility. February fifth.

In a submit about X, Sonnenshein writes:

“…I imagine it has by no means been extra necessary to advocate for the event of a strong exchange-traded choices marketplace for Bitcoin ETFs. GBTC has been on the general public market since 2015, however exchange-traded choices are usually not obtainable on the OTC market. It has by no means been accompanied by choices as a result of it isn’t a operate of the market.”

Elsewhere, he mentioned comparable merchandise must be handled equally, writing:

“Simply as Bitcoin Futures ETFs and Spot Bitcoin ETFs must be (and are) handled the identical approach, choices on these merchandise also needs to be listed.”

He famous that the New York Inventory Change (NYSE) and different nationwide inventory exchanges lately filed functions to permit choices buying and selling on commodity-based ETFs, comparable to Grayscale's personal GBTC fund.

The SEC will now have to think about these filings. Sonnenschein famous that whereas the Bitcoin futures ETF possibility was rapidly applied by an automatic approval course of, the Spot Bitcoin ETF possibility should undergo an extended approval course of, much like that of every underlying fund. did.

Sonnenschein mentioned choices are “good for buyers.” He mentioned choices assist worth discovery, enable higher navigation of market situations and generate revenue. He famous that this is applicable to each retail and institutional buyers alike.

SEC may determine on choices by year-end

The U.S. Securities and Change Fee is presently processing functions for numerous spot Bitcoin ETFs. On January 19, the company started commenting on BlackRock's Nasdaq-listed funds and numerous CBOE BZX-listed funds.

James Seifert, Bloomberg ETF analyst: steered A choice could possibly be made between February and September 2024. A choice could possibly be made as late as December 2024, in accordance with one other Reuters report. A later choice might require approval from each the SEC and the Commodity Futures Buying and selling Fee (CFTC).

In any other case, the SEC permitted numerous underlying spot Bitcoin ETFs on January tenth. Grayscale was one among a number of corporations he obtained approval on the time.

Grayscale's GBTC ETF, which was transformed from an current fund, had $20.5 billion in belongings underneath administration (AUM) as of February 2nd. Whereas that is presently the biggest Spot Bitcoin ETF, it has additionally skilled important outflows.