Grayscale CEO Pleads Bitcoin Spot ETF as SEC Supports Third BTC Futures ETF

Fry Electronics TeamApril 7, 2022
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Grayscale CEO Pleads Bitcoin Spot ETF as SEC Supports Third BTC Futures ETF

Institutional investors rejoice, there is another way to get involved with Bitcoin (BTC). The United States Securities and Exchange Commission (SEC) announced overnight approval of a fourth Bitcoin futures exchange-traded fund (ETF).

The Teucrium fund group is behind the recently approved Bitcoin Futures ETF. The ETF joins a growing number of approved futures ETFs and complements ProShares, Valkyrie and VanEck Bitcoin Futures ETFs.

The SEC filing for the Teucrium ETF. Source: SEC.gov

To date, every bitcoin spot ETF has been disapproved, however, to an interested observer, the manner in which approval was granted could be a boon to expectant spot investors.

In a tweet thread, Grayscale CEO Michael Sonnenshein once again promoted a bitcoin spot ETF. Ranked 71st on Cointelegraph’s Top 100 list, Sonnenshein manages the Grayscale Bitcoin Trust (GBTC) Trust, one of the top ways to buy Bitcoin in the traditional world.

Grayscale CEO Michael Sonnensheinin tweeted, “If the SEC is comfortable with a bitcoin futures ETF, they must be comfortable with a spot bitcoin ETF.”

His argument assumes that since “all bitcoin futures ETFs are created equal” and that the Teucrium falls under a 1933 law, not the 1940 law that the other three ETFs fall under, the argument for the Submission of a bitcoin spot ETF becomes “stronger”. ”

Sonnenshein has been a proponent and protagonist for creating a bitcoin spot ETF for some time; The company shared plans to convert the GBTC Trust into an ETF in October 2021. With over $35 billion in assets under management, the GBTC Trust is the largest in the world of legacy finance – converting it to a cash ETF would be logical.

Eric Balchunas, a Bloomberg analyst, shares his view that this bodes well for Spot, meaning a bitcoin spot ETF.

Related: SEC Denies ARK 21Shares Spot Bitcoin ETF Application

However, while investors are waiting with bated breath for a Bitcoin Spot ETF, analyst Doomberg suggests the issue may not relate to other actions, but to the fact that futures contracts are “settled in cash.”

SEC Chairman Gary Gensler may actually block cash ETFs because “as long as funds flow into cash ETFs faster than they are redeemed, the net effect will provide US dollar exit liquidity for those looking to cash out their bitcoin.”

Meanwhile, ProShares recently filed its Short Bitcoin Strategy ETF with the SEC. The bitcoin spot ETF saga continues.