Grayscale Investments CEO Michael Sonnenshein “can’t imagine” why the United States Securities and Exchange Commission (SEC) “wouldn’t want” to protect Grayscale investors and return the true asset value to them, in a recent podcast interview.
In an interview with What Bitcoin Did, a popular podcast hosted by Peter McCormack, on Feb. 25, Sonnenshein explained that the SEC “violated the administrative procedures act” by denying Grayscale Bitcoin Trust (GBTC) as an approved spot Bitcoin (BTC) exchange-traded fund (ETF), in June 2022.
He explained that this act ensures the regulator doesn’t show “favoritism,” or act “arbitrary,” adding that by approving Bitcoin Futures ETF, and not approving “GBTC’s conversion,” the SEC has acted “arbitrarily.”
Sonnenshein noted that when the SEC started approving the first Bitcoin ETFs, Grayscale took it “as a sign” that the SEC was “actually changing their attitude to Bitcoin.”
He stated that there is actually a “couple billion dollars” of capital that would immediately go right back into investors pockets, on an overnight basis, as the fund would “bleed back” up to its net asset value.
Sonnenshein explained that this is because GBTC is currently trading at a discount to its net-asset-value (NAV), but if it were to convert to an ETF, there would “no longer” be a…
