Michael Sonnenshein, CEO of Grayscale Investments, called for the SEC to approve multiple spot Bitcoin ETFs at the same time to ensure a level playing field.
Arguments for Simultaneous Approval
Speaking on Bloomberg TV, Sonnenshein said Grayscale is prepared to list its Grayscale Bitcoin Trust (GBTC) as an ETF and would lower its expense ratio from 2% to be competitive with other ETFs. However, he is worried that any delay in approving Grayscale’s ETF could disadvantage its many GBTC investors.
More than 10 applicants are competing to launch the first spot Bitcoin ETF. Sonnenshein argued that simultaneous approvals would be fairer, allowing all issuers’ products to launch at the same time. Differences in approval timing could influence investor interest and capital allocation.
Road to a Bitcoin ETF
After a decade of attempts, a spot Bitcoin ETF may soon be approved. The SEC has until early January to decide on applications from issuers like ARK Investment and 21Shares. One challenge is the decision between in-kind versus cash redemptions. In-kind involves exchanging Bitcoin, while cash involves fiat transactions.
Officials are cautious about in-kind redemptions due to concerns about broker-dealers handling Bitcoin. However, Sonnenshein supports the in-kind model, saying it benefits investors and the market through tight spreads and liquidity. Issuers are working to address SEC concerns around in-kind redemptions. Source.