Michael Sonnenshein shared his opinion on the negative attitude of the US securities regulatory body toward Bitcoin spot ETFs applications.
Grayscale Investments is an American digital currency asset management company and a subsidiary of Digital Currency Group (DCG) founded in 2013 and based in Stamford, Connecticut. In 2021 Grayscale applied with the United States Securities and Exchange Commission (SEC) agency to convert its Bitcoin trust (GBTC) fund to Bitcoin ETFs product but that was rejected by the SEC in mid of 2022. Grayscale stricted back to the SEC agency through some legal procedures to get approval for its application because the Grayscale team believes there is better room for Bitcoin spot ETFs and people will remain safer with this product.
On 25 Feb 2023, Grayscale CEO Michael Sonnenshein appeared in an interview with “What Bitcoin Did”. In the interview, Grayscale CEO said that the SEC agency’ violated administrative procedures because the agency rejected its GBTC to Bitcoin spot ETF conversion application.
He also claimed that the rejection of its Bitcoin ETFs applications was indeed arbitrary by the SEC agency because this body approved many Bitcoin futures ETFs but rejected Bitcoin spot ETFs, which is safer than Futures ETFs.
Sonnenshein said that when the SEC agency started to approve the Bitcoin futures ETFs then he thought that the SEC agency started to change its attitude toward the Bitcoin & crypto sector.
According to Grayscale CEO, if Grayscale’s GBTC will get approval then it will result in a very good outcome for the GBTC investors because it will release a couple of billion dollars in the pocket of investors.
Sonnenshein also confirmed that Grayscale is now planning to sue the SEC agency over the rejection of its application.