Grayscale CEO Michael Sonnenshein stated that the company is preparing for a legal battle if the US Securities and Exchange Commission (SEC) rejects Grayscale’s Bitcoin Spot ETF product. In an interview on March 29, Sonnenshein was asked if he would consider filing an Administrative Procedure Act (APA) lawsuit if the financial regulator dismissed its application for its Bitcoin Spot ETF. He stated that he believes all alternatives are on the table. He emphasised that they need continuous support from investors. The next decision date for the investment product’s approval or denial is July 6, 2022; it was previously delayed in February and was initially submitted in October 2021.
The Grayscale team has dedicated all of our firm’s efforts to transforming GBTC, our flagship fund, into an ETF. Sonnenshein remarked that it is critical that investors understand that we have and will continue to inform them about updates. Grayscale announced plans to convert its Bitcoin Trust, GBTC, to a Bitcoin (BTC)-settled ETF in October 2021.
The SEC postponed a decision to approve the product in December 2021, claiming the need for more time to review the proposed revisions; this action was repeated in February. Grayscale’s proposed amendments were opened to public comment by the SEC. According to a February review of the responses gathered by the regulator, 95 percent of respondents supported the move. Grayscale has set aside a section of its website to encourage investors to make comments to the SEC.
Sonnenshein added that GBTC is currently held by investors in all 50 states, and there are over 800,000 accounts in the United States that are all waiting patiently to have it transformed into an ETF.
It was really exciting news that we now had Bitcoin futures ETFs available on the market, but unfortunately, that has driven investors into those Bitcoin futures products, because those are the only ones that exist.
Sonnenshein went on to say that Grayscale was heartened by the SEC’s support for crypto exchanges registering with the agency, as well as President Biden’s recent executive action on cryptocurrency.