Grayscale’s arguments for its Bitcoin spot exchange-traded fund (ETF) conversion grow stronger as the SEC just announced the approval of new Bitcoin futures (ETF).
New Bitcoin Futures ETF Argument
The Securities and Exchange Commission (SEC) announced yesterday, April 6, 2022, that it has approved a fourth Bitcoin futures ETF from Fund group Teucrium.
The most recently approved ETF by Fund group Teucrium has added to the increasing number of ETFs, including that of Proshares, Valkyrie, and VanEck Bitcoin Futures ETFs.
In a Twitter thread, Grayscale CEO Micheal Sonnenshein posted an argument that the company has concerning the SEC approving yet another Bitcoin ETF while still delaying its approval for converting its $GBTC to a spot Bitcoin ETF.
He argues that all Bitcoin Futures are equal and that the Teucrium falls under a 1933 act and not the 1940 act which all previous three ETFs fall under, and because of this the SEC has a weaker argument. He pointed out that they should also be comfortable with a Bitcoin spot ETF if they can approve a Bitcoin Futures ETF.
“Therefore, if the SEC is comfortable with a #Bitcoin futures #ETF, they must also be comfortable with a spot Bitcoin ETF. And they can no longer justifiably cite the ‘40 Act as being the differentiating factor.”
Sonnenshein Tweets.
He mentioned that the action taken by the SEC only makes Grayscale’s argument stronger and gives them more reason to push even further for their BTC spot ETF to be approved.
Grayscale has over $35 billion in assets under management, the GBTC Trust happens to be the largest in the legacy finance world and so the conversion to a spot ETF would be highly significant.
The Bloomberg analyst, Eric Balchnas, shared his opinion about the SEC’s approval of Teucrium’s Bitcoin Futures ETF mentioning that this move proves a ‘good sign for spot’.
Grayscale announced the action concerning the Bitcoin ETF in October 2021 and has been waiting for the SEC to respond positively. The company’s legal officer, Craig Salm only recently addressed some frequently asked questions by its investors concerning the GBTC conversion to Bitcoin ETF. He urged investors to take part in making the process hasty by submitting comments to the SEC during the open review period.
Sonnenshein concluded the argument by calling on more investors to make their voice heard by writing to the SEC as they consider $GBTC’s ETF conversion.
