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The SEC Will Certainly Approve a Bitcoin Spot ETF, says Grayscale’s CEO

Grayscale CEO Michael Sonnenshein believes it’s only a matter of time before a Bitcoin spot ETF gets permission in the United States. He recently claimed that there may be grounds for a lawsuit against the commission if they don’t.

A Matter of ‘When’

Speaking with CNBC last week, Sonnenshein explained why a recent futures ETF approval spells optimism for an upcoming spot variant. The SEC greenlighted the  Teucrium Bitcoin Futures ETF earlier this month, which was filed under the Securities Act of 1933.

That’s a big difference from priorly approved Bitcoin futures funds, which were filed under the Investment Act of 1940. The 33 act follows a slightly different path to regulatory approval, possibly opening a new route for a spot product.

“There were several protections that 40 Act products have that 33 products don’t have,” explained Sonnenshein. He claims, however, that none of them addressed the SEC’s concerns about Bitcoin market manipulation.

Nevertheless, SEC Chairman Gary Gensler has frequently cited such worries when justifying his preference for futures products. His argument has centered around futures products trading under the 40 act on highly regulated exchanges.

With the Teucrium approval, Sonnenshein claims that the commission’s original case against spot ETFs is not valid anymore. As such, the approval of such a product down the line is “a matter of when and not if” according to the CEO.

“If the SEC can’t look at two like issues, the futures ETF and the spot ETF, through the same lens, then it is, in fact, potentially grounds for an Administrative Procedure Act violation,” he said.

The Great Conversion

As the world’s largest Bitcoin fund, Grayscale has been one of the loudest industry voices for getting the approval for an ETF spot. Shares of the fund have been trading at a massive discount for months, inspiring attempts to transition it into such a product. The move will be awaiting SEC approval until July.

It’s not just the CEO making the push, either. Thousands of Grayscale investors have now sent letters to the SEC showing frustration over the commission’s rejection of the product. “I don’t feel like I’m being protected,” wrote one investor, claiming that capital was already fleeing to more approving countries.

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Canada, for example, has already approved multiple spot Bitcoin and Ethereum ETFs, including a carbon-neutral ETF.

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