Grayscale is awaiting for the US Securities and Exchange Commission to greenlight its Bitcoin ETF. With a decision to be made on July 6, Michael Sonnenshein, the crypto investment firm’s CEO, says he wouldn’t hesitate to file a lawsuit against the agency if the application is rejected. He said all options are on the table.
Sonnenshein described the adoption of Bitcoin Futures ETFs as “exciting”. He said people want more options. The crypto investor highlighted that more than 800,000 accounts in the US are waiting patiently to have it converted into an ETF. Sonnenshein said its just a matter of when a spot Bitcoin ETF is given the go-ahead.
Crypto investing firms consider Bitcoin ETF as the holy grail. The crypto-backed exchange-traded fund means fewer fees for investors. It could easily incorporate into retirement portfolios and allow everyday users price exposure to Bitcoin.
However, the SEC has been rejecting crypto ETF applicants with the likes of Bitwise and most recently VanEck. The agency had only allowed Bitcoin futures ETFs, which track the price of BTC futures products. SEC approved two bitcoin futures-based funds, in October 2021, namely the ProShares Bitcoin Strategy ETF and the Valkyrie Bitcoin Strategy ETF. In January 2022, SEC rejected SkyBridge bitcoin ETF because the filing did not meet the requirement of the rules of a national securities exchange designed to prevent fraudulent and manipulative acts and practices.
Experts say SEC’s decision to allow Bitcoin Futures ETFs and reject Bitcoin spot ETFs is attributed to the Commodity Futures Trading Commission. The CFTC has regulatory oversight over derivatives exchanges.