Grayscale CEO Sees BlackRock ETF Filing as a Significant Confirmation for Bitcoin

The Recent Spot Bitcoin ETF Filings: A Moment of Validation for Bitcoin

The recent tsunami of spot Bitcoin ETF filings should be seen as a “moment of validation” for Bitcoin, according to Grayscale Investments CEO Michael Sonnenshein. In a July 12 interview on CNBC’s Last Call, Sonnenshein emphasized the significance of BlackRock’s entrance into the Bitcoin ETF race.

“To see, literally, the largest asset manager in the world publicly commit to advancing their crypto efforts only lends to the validity of the asset class and the staying power it has.”

In the past four weeks, at least seven major institutional firms, including BlackRock, have applied for a spot Bitcoin ETF in the United States. If approved, this would provide both institutional and retail investors in the U.S. with a simple and legally compliant way of gaining exposure to the price of Bitcoin without owning any actual coins.

“The ETF wrapper is tried and true, and it has become the access point for so many different assets, whether they’re commodities or stocks,” said Sonnenshein.

Until now, Grayscale has offered U.S. investors an indirect method of gaining Bitcoin exposure through its Grayscale Bitcoin Trust (GBTC), allowing investors to trade shares in trusts holding large pools of Bitcoin. However, the company aims to convert GBTC into a spot Bitcoin ETF, providing investors with a simpler way to trade the price of Bitcoin without GBTC’s discount to net asset value.

“To be able to give investors Bitcoin exposure through GBTC, like we do today, has been an unbelievable milestone… But moving to an ETF structure will give investors the additional protection that they want,” Sonnenshein explained.

In June 2022, Grayscale filed a lawsuit against the United States Securities and Exchange Commission (SEC) after the rejection of its 2021 application to convert GBTC into an ETF.

“If we’re successful in that challenge, there’s actually billions of dollars of investor capital that would be unlocked through that,” Sonnenshein added.

The price of Bitcoin experienced a significant surge, rising over 20% in the days following BlackRock’s filing for a spot Bitcoin ETF on June 15. It reached a year-high of $31,460 on July 6. As of the time of writing, Bitcoin trades at $30,633.