Grayscale CEO calls SEC “short-sighted” in response to regulatory commentary

CEO Investment company World’s largest running Bitcoin fund Listened to the comments of the Chairman of the Securities and Exchange Commission Gary Gensler About the possible approval pass of the first US Bitcoin ETF.

Grayscale Investments CEO Michael Sonnenshain warned on Tuesday that the SEC would make a mistake if it gave approval to ETFs based on Bitcoin futures before those tied to the cryptocurrency itself. bottom.His company is trying to transform a large one Grayscale Bitcoin TrustInvest in ETFs, owning Bitcoin, not contracts associated with future prices.

“It would be SEC’s short-sighted to allow futures-based products to market before spot products,” Sonnenshein said on CNBC’s.Squawk Box“On Tuesday.” They really should allow both products to market at the same time and let investors choose the way they want. “

Last month, Gensler Showed preference To review an application from an investment company trying to launch an ETF associated with Bitcoin futures traded on the Chicago Mercantile Exchange. This is a disturbing development for Grayscale, which has been trying to convert Bitcoin trust into ETFs since 2016. The approval of the first Bitcoin ETF in the United States is considered a cryptocurrency milestone as it helps to adopt early asset classes.

During discussions and follow-up telephone interviews with Squawk Box, Sonnenshain warned of potential downsides to the SEC’s position. According to Sonnenshein, futures-based ETFs have higher investor fees due to the inherent cost of rolling over at the expiration of futures contracts.

In addition, investors who want an investment fund that more closely tracks Bitcoin prices could be drawn to futures-based ETFs, which could suck up capital from flagship grayscale products, he said. rice field. This is one of the main reasons why Grayscale wants to convert the fund known as the ticker. GBTC, To ETFs. As currently being built, funds can trade on Bitcoin itself at discounts or premiums.

“If futures-based ETFs hit the market without the ability of GBTCs to convert to ETFs, they could harm investors with GBTCs worth tens of billions of dollars today and those with exposures. Yes, we will invest in GBTCs in mutual funds, retirement accounts and elsewhere. “

Overall, he saw the SEC’s stance as follows: strong In the case of Bitcoin, if the regulator is happy with the derivatives associated with the cryptocurrency, it suggests they are happy with the underlying asset class.

Grayscale Bitcoin Trust has $ 32.4 billion in assets under management and holds more than 3% of the available supply of Bitcoin, Sonnenshein said.

The SEC did not immediately respond to a request for a response to Sonnnshein’s comment.

This story is developing. Please check for updates.

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Grayscale CEO calls SEC “short-sighted” in response to regulatory commentary

Source link Grayscale CEO calls SEC “short-sighted” in response to regulatory commentary

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