Michael Sonnenshein, the Chief Executive Officer (CEO) of Grayscale Investments commended the commitment of BlackRock, Fidelity and others who have applied for soot Bitcoin (BTC) Exchange Traded Fund (ETF).
He tagged their effort as a “moment of validation” for BTC as an asset class. The Grayscale CEO had an interview on CNBC’s Last Call where he rejected the notion that BlackRock’s interest in the Bitcoin ETF race made it “uncool.”
“To see, literally, the largest asset manager in the world publicly commit to advancing their crypto efforts only lends to the validity of the asset class and the staying power it has,” Sonnenshein opposed.
Traditional Investors Indicate Interest in Crypto Through Multiple ETF Filings
Within the last few weeks, many accredited traditional investors have indicated inciting interest in the crypto ecosystem, with more of the focus on the leading cryptocurrency by market capitalization, Bitcoin. Many of them have focused their attention on filing for a spot BTC ETF which has never been approved before by the Securities and Exchange Commission (SEC).
So far, about 7 major investment management firms including BlackRock, Fidelity, Invesco, WisdomTree, and Valkyrie have submitted a BTC ETF filing with the SEC. Private brokerage firm Bernstein believes that at this point, there is a fairly high probability that the United States regulator will approve a spot BTC filing.
Grayscale Sues SEC For Rejecting ETF Filing
The SEC’s pattern of rejecting spot BTC ETF applications has gone on for a very long while. Oftentimes, the regulator cites the lack of security standards to prevent fraudulent practices.
Grayscale was once a victim of this rejection from the SEC. The digital currency investing and cryptocurrency asset management firm had attempted to convert the Grayscale Bitcoin Trust (GBTC) to a full-fledged ETF product but the SEC denied the approval.
Shortly after, Grayscale filed its first appeal with the United States Court of Appeals for the District of Columbia Circuit against the SEC’s rejection decision.
Recently, Grayscale submitted registration documents with the SEC to offer Grayscale Ethereum Futures ETF, Grayscale Global Bitcoin Composite ETF, and Grayscale Privacy ETF. Grayscale Global Head of ETFs David LaValle highlighted that the filing reflects Grayscale’s ongoing commitment to providing investors with creative methods to access the digital economy and disruptive technologies.