GBTC approval could return a ‘couple billion dollars’ to investors: Grayscale CEO

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In a recent podcast interview, Michael Sonnenschein, CEO of Grayscale Investments, said that the U.S. Securities and Exchange Commission (SEC) would protect Grayscale investors and give them the true value of their assets. He said he “can’t imagine” why he “doesn’t want” to return it.

In an interview with What Bitcoin Did, the popular podcast On Feb. 25, hosted by Peter McCormack, Sonnenshein denies that the SEC will launch the Grayscale Bitcoin Trust (GBTC) in June 2022 as an approved Bitcoin (BTC) Exchange Traded Fund (ETF). By doing so, he explained that he had violated the Administrative Procedure Act. .

He explained that the act would prevent regulators from taking “preferential” or “arbitrary” actions, approving Bitcoin futures ETFs while refusing to “convert GBTC.” In doing so, the SEC acted “arbitrarily,” he added.

Sonnenshein said that when the SEC began approving the first Bitcoin ETF, Grayscale took it “as a sign” that the SEC was “changing its attitude towards Bitcoin.”

He said the fund “bleeds” to its net worth once approved as a spot, so it actually has “billions of dollars” in capital that will quickly return to investors’ pockets overnight. . Bitcoin ETFs.

Sonnenshein explained that this is because GBTC currently trades at a discount to net asset value (NAV), but when converted to an ETF, the discount or premium “no longer” exists. Incorporating an “arbitrage mechanism”.

He reiterated that Grayscale is in the process of “currently suing the SEC” and may make a decision to challenge the SEC’s initial filing denial by “fall 2023” at the latest.

He also said that Grayscale has “over a million investor accounts” and that investors around the world expect the company to “do the right thing for them.”

Sonnenshein “can’t imagine” why the SEC doesn’t want to “protect investors” and “return their value.”

It has been noted that Grayscale does not intend to “hold back” the fact that it has “commercial interest” in this approval, and Sonnenshein said that if the SEC’s petition to challenge is dismissed, Grayscale will not pursue this action. said it could appeal to in the US Supreme Court.

Related: SEC’s ‘One-Dimensional’ Approach Is Slowing Bitcoin Progress: Grayscale CEO

The SEC will file a 73-page brief with the District of Columbia Circuit outlining its reasons for denying Grayscale’s request to convert its $12 billion Bitcoin Trust into a spot-based Bitcoin ETF in December 2022. It is after June 2022.

The SEC made its decision based on its findings that Grayscale’s offer was not sufficiently protected against fraud and manipulation.

The agency has made similar findings in many previous applications for creating spot-based Bitcoin ETFs.