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Michael Sonnenshein, the CEO of Grayscale, revealed his company’s plans for the future, under the assumption that the SEC will not approve a Bitcoin ETF.
Grayscale CEO, Michael Sonnenshein, recently spoke about the situation in the financial world of early 2022, during which he also detailed some of Grayscale’s plans moving forward. He mentioned that there is a possibility that the SEC will reject the ETF request, in which case, Grayscale might start exploring alternative options.
Sonnenshein noted that, so far, 2022 has been an interesting year for crypto, as a recent BTC surge allowed it to break out and climb back to $48,000 per coin in a matter of hours.
While Bitcoin hitting $48k is certainly a good thing for investors and traders, Sonnenshein believes that the fact that the coin climbed above $45k is more important. This was a psychological barrier that traders needed to see fall, and now that it has happened, he feels optimistic about the future of BTC.
At the time of writing, Bitcoin price sits at $47,458, after previously hitting $48,000 early on Monday morning, only to correct to $47,128, and then recover to $47,674. At the time of writing, the price has once again corrected slightly, but it does not seem like it is starting a new free fall.
When asked about the mentions of institutional investors stepping into the crypto space, Sonnenshein said that it is very encouraging seeing traditional players getting into crypto. Additionally, a number of new firms have started buying crypto and trading it, as well as offering custody services.
A greater number of crypto-related services are emerging, which has boosted adoption and encouraged investorsto diversify their portfolios with cryptocurrencies.
The interview led to the topic of ETFs, and the noticeable lack of a Bitcoin ETF. Sonnenshein insisted that the investors’ voice regarding this matter is extremely important and that it matters to show the SEC that there is interest in turning GBTC into an ETF. He continued by saying that the SEC has encouraged companies working with crypto — especially exchanges — to come and register with them. The current SEC administration even took things further by allowing Bitcoin futures, a big step in the right direction.
Now, Sonnenshein believes that it is a matter of “when” and not “if” a Bitcoin ETF will be approved, given that more investors are getting into crypto.
When asked what would happen if the SEC rejects the proposal once again, and whether Grayscale would be open to an APA lawsuit, Sonnenshein said that all options are on the table.
For now, however, the regulator is still in the middle of the reviewing process that will end in July. Until then, Sonnenshein says that it is important that they hear from as many investors as possible and understand just how big the demand is for an ETF product featuring Bitcoin.
For the moment, it is unknown what the SEC might do given the fact that the regulator has rejected countless Bitcoin ETF proposals over the years. However, with demand growing, especially when it comes to institutional investors who are interested in adding Bitcoin products to their portfolios, the chances of getting SEC approval are increasing.