The Head Of Grayscale Called The Approval Of The Spot Bitcoin-etf In The Us A Matter Of Time

The Head Of Grayscale Called The Approval Of The Spot Bitcoin-etf In The Us A Matter Of Time

The Head Of Grayscale Called The Approval Of The Spot Bitcoin-etf In The Us A Matter Of Time

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

At the beginning of April, the regulator allowed launch 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.

Former Commission Chairman Gary Gensler declared that it is the latter document that provides for more reliable investor protection measures.

“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,” Sonnenschein emphasized.

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

“In our opinion, the question is „when“but 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, ”the head of the company added.

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 Pro Shares.

Read Also: Opinion: The Era Of “free Money” For Crypto Investors Is Close To An End

At Grayscale Investments called converting a bitcoin trust into an ETF is the top priority. Company sent a request to the regulator in October 2021. In February 2022, the SEC postponed the decision.

The company admitted that Commission broke the law when approving bitcoin futures ETFs, and declared their readiness to sue with the agency in case of refusal to convert GBTC into ETF.

Recall that most of the financial advisers surveyed by Nasdaq approved investment into a spot crypto ETF.

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