Michael Sonenshein, head of Grayscale Investments, said that if GBTC gets the green light to “convert” to a spot bitcoin ETF, there will be “no more” discounts or premiums amid the ongoing SEC legal action.
In a recent interview, Grayscale Investments CEO Michael Sonnenschein said he “can’t imagine” why the United States Securities and Exchange Commission (SEC) “doesn’t want” to protect grayscale investors and restore the true value of assets.
In a Feb. 25 interview on What Bitcoin Did, a popular podcast hosted by Peter McCormack, Sonenshein said the SEC “violated the Administrative Procedure Act” by denying Grayscale Bitcoin Trust (GBTC) permission to become a spot bitcoin.
exchange-traded fund (ETF), in June 2022;
The SEC has “arbitrarily” approved the Bitcoin Futures ETF and called it a “GBTC conversion,” saying the action will ensure the regulator doesn’t show “favoritism” or act “arbitrarily.”
He said that if GBTC is approved as a spot bitcoin ETF, there are “several billion dollars” of capital that would immediately be put back into investors’ pockets. Net Asset Value (NAV).
Sonenshein says this is because GBTC currently trades at a discount to NAV, but if it were to convert to an ETF, “there would no longer be” a discount or premium; An “arbitration mechanism” would be established.
He reiterated that Grayscale is in the process of “suiting the SEC now” and could have a resolution challenging the SEC’s rejection of its initial filing by “Fall 2023.”
He also noted that Grayscale has more than “a million investor accounts” and that investors around the world expect the company to “do the right thing” for them.
Sonenshein “can’t imagine” why the SEC doesn’t want to “protect investors” and “return value to them.”
He added that Grayscale “will not be embarrassed” that it has a “business interest” in this approval, adding that filing with the SEC is not a “business interest.” Supreme Court.
Related: SEC’s ‘One-Dimensional’ Approach Slows Bitcoin’s Progress: Grayscale CEO
This comes after the SEC filed a 73-page filing with the US Court of Appeals for the District of Columbia in December 2022, outlining its reasons for rejecting Grayscale’s June 2022 request to convert a $12 billion bitcoin trust into spot-based bitcoin ETFs.
The SEC based its decision on findings that the Grayscale Proposal does not adequately protect against fraud and deception.
The company made similar findings in several earlier filings to create spot bitcoin ETFs.