Grayscale CEO on Bitcoin ETF: Approval is a Matter of If, Not When

Grayscale Investments CEO Michael Sonnenshein has expressed optimism on the prospects of securing approval in its Bitcoin spot Exchange Traded Fund (ETF) pursuit.

When asked whether he knew anyone who would want to invest in a Bitcoin ETF, he answered in the affirmative, noting that the approval is a matter of when, not if. Grayscale Investments operates the crypto industry’s largest trust, the Grayscale Bitcoin Trust (GBTC), which it hopes to convert to a full-fledged spot Bitcoin ETF.

One underlying difference between a Bitcoin Trust and an ETF is that the former has a restriction on the number of shares it can issue to investors. In contrast, the latter has no limit, creating room to expand as demand increases.

Grayscale Set for Spot Bitcoin ETF

In CNBC’s Last Call interview, the Grayscale CEO said he maintains his optimism because the spot Bitcoin ETF product is what the company has spent the last few years preparing for.

“I am optimistic that we will get one,” says @Grayscale CEO @Sonnenshein about a Grayscale $BTC ETF. “It remains a matter of when, not a matter of if.” $GBTC pic.twitter.com/SJHHxT5van

— Last Call (@LastCallCNBC) December 5, 2023

The initial attempt toward converting the GBTC to Bitcoin ETF met with a rejection from the SEC, a decision that sparked a legal war. To position itself properly against the SEC in the legal tussle, the company hired Donald B. Verrilli Jr, a seasoned solicitor who worked with the Obama Administration, to join its legal team.

The company’s moves paid off as the Court ruled in its favor, declaring the SEC’s decision to reject the “arbitrary and capricious” conversion, considering the markets regulator had previously approved a Bitcoin Futures product.

The SEC took the order to review its verdict in good faith as it chose not to Appeal the decision as expected of it. In the latest update, both the SEC and Grayscale have been in communication, a move many consider positive for a potential launch of the much-awaited spot Bitcoin ETF product.

Bitcoin Approval Odds Remain High

The expectation for Bitcoin ETF is through the roof, and Bloomberg Analysts Eric Balchunas and James Seyffart have pegged the approval odds at 90% by January.

While many of the applicants for the product are in a vantage position to receive approval based on their communications with the SEC and application revisions, market experts have projected that applications are likely to get approval at once as the SEC may try to remove the first mover advantage for any applicant.

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