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In the face of rising institutional interest in Bitcoin, Grayscale Investment's CEO, Michael Sonnenshein, hailed BlackRock's recent move to apply for a spot Bitcoin exchange-traded fund (ETF) as an endorsement for the digital currency. Sonnenshein's remarks came during a July 12 discussion on CNBC's Last Call, dismissing the idea that BlackRock's entry into the crypto world made it less attractive or "uncool."
Over the course of a month, the financial world has witnessed seven prominent firms, including the world's largest asset manager BlackRock, initiating efforts to establish a Bitcoin ETF in the United States. Upon regulatory approval, this move would provide a straightforward, regulation-abiding route for both professional and retail investors in the U.S. to gain exposure to Bitcoin price movements without actually owning the digital asset.
According to Sonnenshein, the ETF framework is a proven conduit for investors to tap into various assets, from commodities to stocks. He firmly believes Bitcoin is a permanent fixture in the asset class, advocating for broader and deserved access for investors.
Up until now, Sonnenshein's Grayscale has catered to U.S. investors by offering a somewhat circuitous route to Bitcoin through its Grayscale Bitcoin Trust (GBTC), trading shares in trusts loaded with substantial Bitcoin volumes. Nevertheless, the firm is intent on simplifying this process by converting it to a spot Bitcoin ETF, alleviating the issue of GBTC's troubling discount to the net asset value.
Sonnenshein stressed that offering Bitcoin exposure through GBTC was a significant achievement, but the transition to an ETF structure would bring additional security desired by investors. Grayscale had taken legal action against the U.S. Securities and Exchange Commission in June 2022, challenging the disapproval of its application to convert GBTC into a spot Bitcoin ETF. Sonnenshein suggested a successful challenge could liberate billions of dollars in investor capital.
