Grayscale CEO, Michael Sonnenshein is optimistic about Bitcoin ETF’s future in the US. He has commented saying that institutional investors who have their Bitcoin deposits in the GBTC funds are now insisting on an authorized ETF. Grayscale is now preparing to get the final approval from the government.
Talking about the status of Bitcoin ETFs in the US Sonnenshein said it’s the matter of “when” rather than “if.”
“A Bitcoin ETF here in the US is really a matter of when, not a matter of if…We’re looking for a couple of different points of maturation in the underlying market. That’s the final stages of what regulators need to approve those types of products.”, Sonnenshein told Squawk Box in an exclusive interview.
"A #bitcoin ETF here in the US is really a matter of when, not a matter of if," @Grayscale's @Sonnenshein. "We're looking for a couple of different points of maturation in the underlying market. That's the final stages of what regulators need to approve those types of products." pic.twitter.com/GsH0fdm0Xf
— Squawk Box (@SquawkCNBC) July 19, 2021
Grayscale is optimistic on SEC’s approval
Bitcoin ETF is a regulatory complaint institutional investment product that tracks Bitcoin prices. However, currently Grayscale is waiting for the SEC approval of Bitcoin ETF, and once they have cleared that stage, Grayscale’s top Bitcoin (BTC) product, i.e., GBTC will be converted into a Bitcoin ETF.
GBTC has already gained popularity amongst institutional buyers. In absence of a Bitcoin ETF, investors are bound to invest with GBTCs.
WisdomTree Bitcoin ETF on Halt
However, the SEC’s recent delay of the WisdomTree ETF has raised questions on the regulator’s stance on crypto ETFs. WisdomTree is the biggest pure-play independent Exchange Traded Product (ETP) provider worldwide, and they had approached the SEC to authorize the conversion of their ETP into a Bitcoin ETF. But, the Securities and Exchange Commission has postponed its decision on Wisdom Tree’s Bitcoin ETF by asking for public feedback instead.
According to the SEC notice, “The Commission requests that interested persons provide written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.”
The chief regulator SEC has delayed a decision on three Bitcoin ETFs already, and growing scrutiny of top government administrators on the crypto ecosystem suggests an approval might not happen unless there are clear regulations set for investor protection.
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