The managing director of Grayscale Investments believes the SEC should allow the launch of both direct and exchange-traded funds (ETFs) for cryptocurrencies.
interview in the Squawk Box program, Michael Sonnenshein spoke about the possible adoption of cryptocurrency ETFs by the US Securities and Exchange Commission (SEC). It was about a recent speech by SEC Chairman Gary Gensler, who focused on bitcoin futures contracts traded on stock exchanges.
“If the SEC allows the launch of” futures ETFs “before approving the” spot ETFs “for bitcoin, such a decision by the regulator would be short-sighted. It’s like putting a cart in front of a horse, ”Sonnenshine said.
He explained that one of the top priorities of the SEC is to protect the interests of investors, and cryptocurrency ETFs are more convenient for users in terms of investments and their protection. The Grayscale executive believes that ETFs pegged to bitcoin and bitcoin futures should hit the market at the same time. The podcast host agreed with him, saying that bitcoin spot ETFs make more sense, otherwise many potential investors could lose interest in the still few US pension funds that have started investing in bitcoin.
In the spring, Grayscale Investments announced its readiness to launch an exchange-traded fund for bitcoin after the approval of the regulator, as the company’s clients show interest in these investment products.
Sonnenshine also spoke about the purchase of bitcoins by the government of El Salvador after the cryptocurrency became legal tender in the country on September 7. Sonnenshine is confident that when Salvadorans start using bitcoin for money transfers, it will give impetus to other countries, and they will want to follow the example of El Salvador.