Grayscale Investments, a cryptocurrency asset manager, is actively participating in discussions with the U.S. Securities and Exchange Commission (SEC) regarding its request to transform its primary bitcoin trust into an exchange-traded fund (ETF) for spot bitcoin, according to CEO Michael Sonnenshein. Sonnenshein expresses confidence in Grayscale, highlighting the company’s perceived advantageous position compared to other applicants seeking approval for spot bitcoin ETFs.
Grayscale is in “constructive engagement” with the SEC.
Grayscale Investments CEO Michael Sonnenshein discussed the company’s strategy to transform its flagship bitcoin trust (GBTC) into a spot bitcoin exchange-traded fund (ETF) during an interview with Bloomberg at DC Fintech Week on Wednesday. The SEC had initially rejected Grayscale’s application for a spot bitcoin ETF, but a recent court ruling mandated a reevaluation of the application by the securities regulator.
“A few months ago, there was a decision from the D.C. Circuit that overturned the SEC’s denial of the GBTC uplisting to a spot Bitcoin ETF on the New York Stock Exchange. We have a deep respect for the court process,” explained Sonnenshein.
He went on to say, “Following that decision, there was a window during which the SEC could have contested it, but they chose not to. Over the past few weeks, our team has submitted the necessary filings to the SEC, including our S-3 filing. This positions us to engage in a positive dialogue with the SEC, backed by all the required documentation to progress toward the uplisting on NYSE.”
The CEO highlights Grayscale’s “significant advantage” over other applicants for a spot bitcoin ETF, citing the well-established status of the Grayscale Bitcoin Trust (GBTC) as a seasoned issuer for several years. This distinction allows Grayscale to file an S-3, a simplified registration statement, in contrast to other issuers compelled to file more comprehensive S-1 forms. Sonnenshein emphasizes that Grayscale’s operational readiness, existing product, investor base, and trading history set it apart from other applicants who are yet to establish these foundations.
Expressing optimism, Sonnenshein believes Grayscale will overcome any final hurdles, delivering what patient investors have been anticipating. He underscores the operational preparedness of Grayscale’s team and their explicit communication of readiness to the SEC for GBTC’s transition to an ETF.
Acknowledging competition in the ETF space, Sonnenshein welcomes other issuers’ efforts while reiterating Grayscale’s confidence in navigating the regulatory process. In conclusion, he mentions SEC Chairman Gary Gensler’s consideration of multiple spot bitcoin ETF applications and anticipates potential approvals in the early months of the following year. Citing expectations from various analysts, including JPMorgan, and asset management firm Alliance Bernstein’s bullish forecast for bitcoin reaching $150,000 by 2025, Sonnenshein points to a promising landscape for the future approval and adoption of spot bitcoin ETFs.