Grayscale Investments Engages with SEC on Bitcoin ETF Application

Grayscale Investments' CEO Optimistic About Bitcoin ETF Conversion

Grayscale Investments, a leading crypto asset manager, is actively working with the U.S. Securities and Exchange Commission (SEC) to convert its flagship bitcoin trust into a spot bitcoin exchange-traded fund (ETF). CEO Michael Sonnenshein believes that Grayscale has a significant advantage over other spot bitcoin ETF applicants.

In an interview with Bloomberg at DC Fintech Week, Sonnenshein discussed Grayscale's plan to convert its flagship bitcoin trust (GBTC) into an ETF. Initially, the SEC rejected the application, but a recent court order required the regulator to reevaluate Grayscale's proposal.

Sonnenshein acknowledged the court's decision, stating, "We really respected and continue to respect the court process." He further explained that after the court ruling, the SEC had an opportunity to challenge it but chose not to. Grayscale took advantage of this and submitted the necessary filings, including the S-3 filing, to engage in constructive dialogue with the SEC. Sonnenshein emphasized, "Timelines are certainly not something that has been discussed, but what I can tell you is that the SEC is constructively engaging at the moment."

Grayscale's Advantage Over Competitors

Sonnenshein believes that Grayscale has a distinct advantage over other spot bitcoin ETF applicants due to the company's established track record. He highlighted that Grayscale Bitcoin Trust (GBTC) has been a well-known seasoned issuer for several years, allowing the company to file an S-3 registration statement. In contrast, other issuers have had to file more comprehensive S-1 statements, requiring extensive disclosure of information.

Additionally, Sonnenshein pointed out that Grayscale already has a product, investors, and a trading history, unlike its competitors. He expressed optimism that Grayscale will overcome any final hurdles and provide its investors with the opportunity they have been patiently waiting for.

Regarding competition, Sonnenshein welcomed other issuers attempting to launch bitcoin ETFs, stating, "We think it's fantastic that there are other issuers that are also trying to launch products." He emphasized that Grayscale has been operationally ready to operate GBTC as an ETF and has made this known to the SEC.

SEC's Consideration of Bitcoin ETF Applications

SEC Chairman Gary Gensler recently stated that the regulator is reviewing between eight and ten spot bitcoin ETF applications. Analysts, including those at JPMorgan, anticipate the approval of multiple spot bitcoin ETFs simultaneously early next year. Alliance Bernstein, a global asset management firm, predicts that the price of bitcoin will reach $150,000 by 2025 and expects the imminent approval of spot bitcoin ETFs.

Do you think the SEC will approve Grayscale Investments' application to convert GBTC into a spot bitcoin ETF? Share your thoughts in the comments section below.

Frequently Asked Questions

Can the government steal your gold?

Your gold is yours and the government cannot take it. It's yours, and you earned it by working hard. It belongs entirely to you. However, there may be some exceptions to this rule. Your gold could be taken away if your crime was fraud against federal government. You can also lose precious metals if you owe taxes. However, even if taxes are not paid, gold is still your property.

How does a gold IRA account work?

For people who are looking to invest in precious materials, Gold Ira account accounts provide tax-free investments.

Physical gold bullion coin can be purchased at any time. To invest in gold, you don't need to wait for retirement.

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It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. You should add them to your portfolio if you are looking to diversify.

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  • (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (
  • Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (
  • You can only purchase gold bars at least 99.5% purity. (
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (
  • If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (

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The History of Gold as an Asset

From ancient times to the beginning of the 20th century, gold was used as a currency. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.

In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This resulted in a decline of foreign currency demand and an increase in the price. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They sold some of their excess gold to Europe to pay off the debt.

Since most European countries were not confident in the U.S. dollar they began accepting gold as payment. After World War I, however, many European countries started using paper money to replace gold. Since then, the price of gold has increased significantly. Even though gold's price fluctuates, it is still one of the most secure investments you could make.


By: Kevin Helms
Title: Grayscale Investments Engages with SEC on Bitcoin ETF Application
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Published Date: Sat, 11 Nov 2023 03:30:37 +0000

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