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Opinion of Grayscale CEO on BlackRock’s Bitcoin ETF: “it’s a matter of when”

Crypto news: Recently, Grayscale CEO Michael Sonnenshein expressed several opinions regarding BlackRock’s requested Bitcoin ETF

Specifically, by endorsing what Bitcoin Magazine reported on Twitter: 

Grayscale CEO: BlackRock’s ETF filing confirms Bitcoin’s validity

According to Michael Sonnenshein, CEO of Grayscale Investments, the huge increase in spot Bitcoin Exchange-Traded Fund (ETF) applications should be seen as a “validation moment” for Bitcoin.

Specifically, during an interview with CNBC’s Last Call on 12 July, Sonnenshein dismissed the idea that BlackRock’s entry into the Bitcoin ETF race has made this cryptocurrency “unfashionable.” 

Moreover, according to Bloomberg, the ETF approval could inject $30 trillion into the Bitcoin market, which is also confirmed on Twitter. 

As we know, in the past four weeks, at least seven major institutional firms, including BlackRock, have applied for a Spot Bitcoin ETF in the United States.  

Regarding BlackRock’s goal to launch a Spot Bitcoin ETF, Grayscale CEO Sonnenshein said this is an important “validation moment.” 

What will happen if BlackRock’s Bitcoin ETF is approved?

If approved, both institutional and retail investors in the United States will have the opportunity to gain exposure to the price of Bitcoin without owning it directly.

In fact, Sonnenshein claims the following: 

Sonnenshein also points out that Bitcoin is an asset that will continue to exist over time, and investors want and deserve access to it.

As we know, up until now, Sonnenshein’s Grayscale has offered US investors an indirect method of gaining exposure to Bitcoin through the Grayscale Bitcoin Trust (GBTC), which allows trading in shares of trusts that hold large amounts of Bitcoin.

However, recently, Grayscale’s attorneys submitted a letter to the DC Circuit highlighting the disparity between the SEC’s approval of a leveraged ETF on Bitcoin futures and the continued denial of approval of ETFs based on spot Bitcoin, see GBTC. 

However, the company’s goal is to convert the Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF, offering investors an easier way to trade Bitcoin without the drawback of GBTC’s discount to the net value of the asset.

Indeed, according to Sonnenshein, the following is true: 

“Being able to offer investors exposure to Bitcoin via GBTC, as we do today, was an incredible achievement […] But the move to an ETF will provide investors with that additional protection we want.” 

As we know, in June 2022, Grayscale filed a lawsuit against the US Securities and Exchange Commission (SEC) following the rejection of the GBTC conversion application filed in 2021.

In this regard, Sonnenshein stated: 

“If we can win this legal battle, there would be billions of dollars of investor capital that would be unlocked.” 

It is worth mentioning that after BlackRock announced the ETF, the price of Bitcoin rose 20% in the following days, reaching a high for the year on 6 July at $31,460.

Some thoughts on the possible SEC approval

The countdown to possible approval in the United States of an ETF that invests directly in Bitcoin appears to be in its final stages. 

BlackRock was not the first to come knocking at the SEC seeking approval for an ETF based on the physical Bitcoin, but the attempt by the world’s largest asset manager has prompted a series of similar requests after years of negativity from the US Securities and Exchange Commission. 

In a short period of time, major players in the asset management industry, including WisdomTree, VanEck, Invesco, and Fidelity Investments, have submitted requests to launch spot Bitcoin-based ETFs.

And so, Cathie Wood’s Ark Invest and 21Shares have also joined this trend, submitting applications for the ARK 21Shares Bitcoin ETF for the third time.

The CEO and co-founder of 21Shares, Hany Rashwan, explained the following on the matter: 

“Bitcoin has proven its value both as an investable asset and as a revolutionary technology, reaffirming the importance for the United States to have a spot Bitcoin-based ETF. 

Since its founding in 2018, 21Shares has always advocated for clear, responsible and reasonable market regulations, and we are optimistic that we can be the first to push the US in this direction through a dedicated BTC instrument.”

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.