Grayscale CEO pleads Bitcoin spot ETF as SEC backs third BTC Futures ETF

Institutional investors rejoice! There is another way to get exposure to Bitcoin (BTC). Overnight, the United States Securities and Exchange Commission (SEC), approved a fourth Bitcoin futures exchange traded fund (ETF).

Teucrium, a fund group, is behind the latest approved Bitcoin Futures ETF. This ETF is now part of a growing list of futures ETFs that have been approved, including Valkyrie, ProShares and VanEck Bitcoin Futures ETFs.

The SEC filing regarding the Teucrium ETF. Source: SEC.gov

Each Bitcoin spot ETF was rejected until now. However, one investor observed that the approval process could have been a boon to spot investors.

The plot thickens along the way to $GBTC’s spot #Bitcoin conversion…
— Sonnenshein (@Sonnenshein) April 7, 2022

Grayscale CEO Michael Sonnenshein retorted in a tweet thread that he was calling for a Bitcoin spot ETF. Sonnenshein, 71st in Cointelegraph’s Top 100 list, manages the Grayscale Bitcoin Trust Trust (GBTC Trust), one of the main avenues to buy Bitcoin in the traditional market.

Grayscale CEO Michael Sonnensheinin stated that if the SEC is happy with a Bitcoin futures ETF they must also feel comfortable with a spot Bitcoin TF.

His argument is that since “all Bitcoin futures ETFs” are equal, and the Teucrium falls within a 1933 act (not the 1940 act) then the argument for filing an ETF on Bitcoin spot becomes “stronger.”

If the SEC is happy with a #Bitcoin Futures #ETF they should also be comfortable with an ETF that tracks spot Bitcoins. They can’t justifiably cite ’40 Act as the differenceiating factor.
— Sonnenshein (@Sonnenshein) April 7, 2022

Sonnenshein was a long-standing advocate and leader in the creation of a Bitcoin spot exchange traded fund (ETF). The company had plans to convert the GBTC Trust to an ETF in October 2021. The GBTC Trust, which has more than $35 billion in assets under its management, is the largest legacy finance organization. A conversion to a spot ETF could be a significant step in that direction.

Eric Balchunas, a Bloomberg analyst, agrees that it is a “good signal for spot”, meaning that it could be a Bitcoin spot ETF.

JUST IN: The SEC approves the Teucrium Bitcoin Futures Exchange Traded Fund. It is notable that it was filed under the 33 Act. Genz stated that this Act doesn’t provide enough protections to offset the 40 Act. This is a positive sign for spot. However, we believe that exchanges still need regulations before he gives the green light. h/t @CoinDesk pic.twitter.com/SZMkuMrASc
— Eric Balchunas (@EricBalchunas) April 6, 2022

Related: SEC rejects application for ARK 21Shares spot Bitcoin ETF

Analyst Doomberg suggested that investors are waiting with bated breath for a Bitcoin Spot Exchange Tradeable Fund. This is because futures contracts can be “settled” in cash, and not different acts.

Gary Gensler, Chairperson of the SEC, may be blocking spot ETFs. This is because, “as long funds flow into spot ETs faster than they’re redeemed,” the net effect provides liquidity in the US for those who want to cash out Bitcoin.

ProShares filed a short Bitcoin Strategy ETF application with the SEC. The Bitcoin spot ETF story continues.

https://cointelegraph.com/news/grayscale-ceo-pleads-bitcoin-spot-etf-as-sec-backs-third-btc-futures-etf