Grayscale CEO believes Bitcoin ETF has become a political issue

Grayscale CEO Michael Sonnenshein asked why regulators still need to approve a Bitcoin ETF while Bitcoin futures ETFs have now gone live.

Michael Sonnenshein – CEO of Grayscale

The question of whether the US regulators allow a Bitcoin Exchange Traded Fund (ETF) on the spot market has become a political issue, according to Michael Sonnenshein.

Speaking at the Crypto Goes Mainstream event, Michael Sonnenshein said the debate has now spread beyond the investment community to include politicians.

“Last week we really saw support for a Bitcoin ETF in the Emmer and Soto spot market,” said Sonnenshein, referring to the letter from Rep. Tom Emmer (R) and House of Representatives Darren Soto (D). to SEC Chairman Gary Gensler.

In the letter, Emmer and Soto asked, “If the SEC is ready to approve a Bitcoin futures ETF, why wouldn’t the Commission feel comfortable approving a spot Bitcoin ETF?”

In the past, the SEC has repeatedly denied Bitcoin-related ETF applications in the spot market, while recently approving several Bitcoin futures ETFs.

Emmer and Soto note that the SEC is really only interested in the underlying Bitcoin market, such as price manipulation in regulated markets of considerable size.

According to Sonnenshein, the crypto industry – and now politics – emphasizes the case that if the agency is familiar with derivatives and market-priced futures contracts, the spot market, then you should be comfortable with the spot market.

While the SEC has repeatedly drawn attention to Bitcoin’s volatility in its warnings to investors, Sonnenshein argues that investors making an investment know fully and clearly that cryptocurrencies and their capital experience accompanying volatility in addition to the inherent volatility of this emerging asset class will. The advent of cryptocurrency derivatives, credit, and credit has acted as a catalyst for a new wave of investors getting into cryptocurrencies. These are the types of tools investors are used to when thinking about accessing an asset class.

Grayscale has long had ambitions to turn its flagship product Grayscale Bitcoin Trust (GBTC) into a Bitcoin ETF. In October, they filed an official application with the SEC to convert GBTC into a physical Bitcoin-backed ETF.

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