Grayscale CEO advocates for spot Bitcoin ETF options to gain approval Grayscale CEO advocates for spot Bitcoin ETF options to gain approval
Michael Sonnenshein commented on currently pending applications.
2 min read
Updated: Feb. 5, 2024 at 11:43 pm UTC
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Grayscale CEO Michael Sonnenshein urged regulators to approve spot Bitcoin exchange-traded fund (ETF) options in a statement on Feb. 5.
Sonnenshein wrote in a post on X:
“… I think itโs never been more important … to advocate for the development of a robust listed options market for spot Bitcoin ETFs. Although GBTC has been in the public market since 2015, it was never accompanied by listed options, as they arenโt a feature of the OTC Market.”
Elsewhere, he said that similar products should be treated equally, writing:
“The same way bitcoin futures ETFs and spot bitcoin ETFs should (and now are) treated the same, so too should listed options on these products.”
He noted that the New York Stock Exchange (NYSE) and other national securities exchanges have recently submitted filings that would allow options trading on commodity-based ETFs like Grayscale’s own GBTC fund.
The SEC must now take those applications into consideration. Sonnenshein noted that although Bitcoin futures ETF options were quickly introduced through an automatic approval process, spot Bitcoin ETF options must go through a longer approval process similar to the process for each underlying fund.
Sonnenshein called options “good for investors.” He said that options support price discovery, allow for better navigation of market conditions, and generate income. He noted that this applies to both retail investors and institutional investors alike.
SEC may decide on options before year end
The U.S. Securities and Exchange Commission is currently in the process of handling various spot Bitcoin ETF applications. The agency opened comments on BlackRock’s Nasdaq-listed fund and various Cboe BZX-listed funds on Jan. 19.
Bloomberg ETF analyst James Seyffart has suggested that a decision could occur between February and September 2024. Separate reports from Reuters suggest that a decision could occur as late as December 2024; that later date is in part due to the possibility that both the SEC and the Commodity Futures Trading Commission (CFTC) will need to grant approval.
The SEC otherwise approved various underlying spot Bitcoin ETFs on Jan. 10. Grayscale was one of several firms to gain approval at that time.
Grayscale’s GBTC ETF, converted from an existing fund, had $20.5 billion in assets under management (AUM) as of Feb. 2. This makes it the spot Bitcoin largest ETF at present, though it also experiences considerable outflows.
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Mike Dalton
Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada's West Coast.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
Michael Sonnenshein is the CEO at Grayscale Investments, the worldโs largest digital currency asset manager.