During an interview with CNBC, Michael Sonnenshein, the CEO of Grayscale Investments, expressed his frustration with the US Securities and Exchange Commission’s (SEC) repeated refusal to approve the launch of a Bitcoin-pegged ETF.
The SEC has cited concerns about manipulation in the spot market and the inability to detect it as the reason for rejecting these applications.
However, Sonnenshein believes that the real reason behind the SEC’s refusal is the agency’s inability to regulate the volatile Bitcoin market.
He pointed out that the SEC had approved the launch of an ETF for Bitcoin futures, and since the spot and futures markets are highly correlated, the agency’s argument is unconvincing.
Grayscale Investments filed a lawsuit against the SEC last year for refusing to convert the GBTC fund into an ETF.
Sonnenshein is confident that the Grayscale team has weighty arguments, and the persistent desire of investors to gain access to Bitcoin through ETFs is proof of the need for them.
He believes that adding Bitcoin ETFs to the regulatory perimeter will protect investors’ rights and prevent them from investing in uncontrolled products.
Sonnenshein emphasized that Grayscale Bitcoin Trust has been publicly traded since 2015, and reporting to the SEC has only been filed since 2020, so there is no need for additional regulation.
In conclusion, Michael Sonnenshein believes that the SEC should focus on its direct responsibilities, such as investor protection, rather than hindering the development of the industry by violating the Law on Administrative Procedures.
The arguments of the SEC are unconvincing, and the correlation between the spot and futures markets proves that there is no reason to refuse the launch of Bitcoin-pegged ETFs.