- SEC has postponed its announcement until today.
- The SEC has only authorized Bitcoin exchange-traded fund (ETF) applications.
In order to have its Bitcoin ETF proposal approved, Grayscale is prepared to sue the SEC. According to Michael Sonnenshein, CEO of Grayscale, in an interview with Bloomberg, he was open to any approach that may bring about a Bitcoin ETF. “I think all options are on the table” was the answer that came from him when questioned explicitly about whether he was prepared to take legal action against SEC. He urged all investors to create additional lines of contact with the US regulators.
A spot Bitcoin ETF from Grayscale has been in the works for some time now. The corporation made an application for a Spot Bitcoin ETF was made in 2021 by the corporation to convert its Grayscale Bitcoin Trust. However, SEC has postponed its announcement until today, and therefore the corporation is on hold.
State of Uncertainty
The markets are reacting to this state of uncertainty, compounded by the fact that the SEC has not yet accepted any prior applications for Bitcoin spot ETFs. The Grayscale Bitcoin Trust (GBTC) manages assets for more than 800,000 investors, making it the biggest fund of its type. There is a 20 percent discount on the trust’s share price, which means one may obtain Bitcoin exposure at a lower cost, but they will earn less money if they decide to sell.
The SEC has only authorized Bitcoin exchange-traded fund (ETF) applications in the past. Despite their superficial resemblance, the underlying assets of a Bitcoin ETF and a Bitcoin futures ETF are very different, despite their apparent similarity. Despite being more volatile, the Bitcoin futures market has a more transparent regulatory framework than the spot market.