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Grayscale CEO Michael Sonnhenshein spoke to Fox Business on Wednesday about his fund’s rejected Bitcoin ETF application.
Though he believes that Grayscale is receiving unfair treatment, he denies regulators having a larger agenda to suppress Bitcoin.
- During the interview, host Charles Payne asked if Sonnhenshein thought there were “underlying reasons” for its hesitancy to approve an ETF. In a similar vein, he asked whether the CEO viewed Bitcoin as a “threat” to the establishment.
- To the contrary, Sonnhenshein believes that regulators worldwide are opening themselves up to Bitcoin and crypto. Between Biden’s executive order and the Lummis-Gillibrand bill, progress is being made to establish crypto’s legitimacy as an asset class.
- “If you want to specifically talk about the SEC and our specific issue which is an investor protection issue, that’s one conversation,” he said.
- The Securities and Exchange Commission (SEC) rejected Grayscale’s application to transition into a Bitcoin Spot ETF last week. The regulator claimed Grayscale does not have sufficient consumer protections for such a product, but Bitcoiners are speculating otherwise.
- Bloomberg’s Eric Balchunas, for example, believes SEC chairman Gary Gensler is holding the approval “hostage” to further his career ambitions.
- A Bitcoin spot ETF would make Bitcoin an easier asset to invest in from a regulatory standpoint. Though companies have launched many equivalent products worldwide, the US is yet to approve one.
Grayscale’s CEO has previously noted “inconsistencies” with how the SEC treats similar market products.