For the director of Grayscale, the fact that the SEC approved the Bitcoin futures ETF presented by Teucrium completely changed the view.
The CEO of Grayscale Investment, Michael Sonnenshein, clarified that it is only a “matter of time” before the SEC finally gives the green light and officially approves the first Bitcoin ETF in the US markets.
Grayscale CEO Feels Optimistic About an ETF
This information got highlighted by Sonnenshein during an interview led by the ETF Edge program broadcast by CNBC, where the director of Grayscale feels incredibly optimistic because the SEC recently approved the application for a Bitcoin futures ETF to Teucrium at the beginning. A monthly report highlighted that the proposal got shielded by the Securities Law of 1933 and not within the Investment Company Law of 1940.
Sonnenshein also expressed that approving Teucrium’s proposal for a Bitcoin futures ETF under Law 33 invalidates the insecurities and allegations suggested by the SEC regarding the rejected proposals.
Therefore, the CEO of Grayscale highlighted that doing it this way might include an independent board of directors, accounting, and custody policies with vital differences.
He added that it is a question of when the SEC fails to view two similar topics, the futures ETF and the cash ETF, through the same lens; then, indeed, it is a potential ground for a possible disruption of the Administrative Procedure Act.
Outlook Might be Favoring Grayscale
Teucrium receiving the green light for its Bitcoin futures ETF caused many expectations among analysts and specialists. However, there have been no problems regarding this type of exchange-traded fund; this could be a path where all those proposals that intend to count on direct exposure to the leading digital asset could go.
The Bloomberg analyst, James Seyffart, highlighted that this approval could be a suitable procedure for a Bitcoin ETF in the US.
This approval would eventually go public since it could get covered under the Securities Act of 1933. It establishes rules that could be beneficial for cases like those of Grayscale, which tries to turn its Grayscale Bitcoin Fund (GBTC) into a local exchange-traded fund.
Grayscale has an ongoing application with the SEC to convert its GBTC into an ETF based entirely on Bitcoin. Until July, the regulator has to present an official verdict, which the company plans to appeal and sue.
While the bid for a Bitcoin-based ETF is still going on, Teucrium got listed alongside ProShares, Valkyrie, and VanEck as the entities fully authorized to carry out activities with an exchange-traded fund connected to BTC futures.
Keep in mind that these are entirely different products since digital currencies do not get regulated by the SEC, which has severe doubts about possible market manipulation and the extreme volatility experienced by the price of the leading exponents for a Bitcoin ETF.
By: Jenson Nuñez
