Grayscale Bitcoin ETF: CEO Michael Sonnenshein Talks About the Competition in the Spot Bitcoin ETF Market
The race to launch the first spot Bitcoin exchange-traded fund (ETF) is heating up, with multiple issuers filing updated S-1 forms and making other announcements. Grayscale, one of the leading cryptocurrency asset managers, has also provided an update regarding authorized participants (APs) in a communication to the U.S. Securities and Exchange Commission (SEC).
In a recent post on social media platform X, Grayscale CEO Michael Sonnenshein expressed confidence in their preparedness, stating, “We’ve had APs lined up since 2017.” This claim is backed by an SEC filing from May 2017, which mentions Jane Street and Virtu as authorized participants for Grayscale.
While industry experts don’t doubt Grayscale’s position as a frontrunner in the spot Bitcoin ETF race, they are cautious about meeting regulatory requirements. Bloomberg ETF analyst James Seyffart commended Grayscale’s readiness with AP agreements but expects more issuers to enter the race. The SEC has set a window for spot Bitcoin ETF approvals between January 5 and 10, 2024.
Although Grayscale’s adoption of a “cash model” for ETF approval has garnered positive attention, Bloomberg senior ETF analyst Eric Balchunas stressed the importance of filing S-1 forms as required and confirming authorized participants. He expressed confidence that Grayscale will make the necessary updates soon.
As the competition in the spot Bitcoin ETF market intensifies, other prominent issuers such as BlackRock, Fidelity, Valkyrie, VanEck, Bitwise, Invesco, Galaxy, WisdomTree, and Franklin Templeton have also made announcements regarding authorized participants or fees in their updated S-1 filings. Fidelity Wise Origin Spot Bitcoin ETF stands out with its low fee of 0.39%.
Investors and observers eagerly await the approval of the first spot Bitcoin ETF, which will provide them with a regulated and accessible way to gain exposure to the leading cryptocurrency.