Global asset manager Grayscale continues to mount pressure on the US Securities and Exchange Commission for a Bitcoin ETF. In a recent development, CEO of Grayscale, Michael Sonnenshein shares his thoughts on which he thinks should come first between a Bitcoin Futures ETF and Spot Bitcoin ETF. He also touched upon Bitcoin adoption in El Salvador.
While speaking to Squawk Box, Michael Sonnenshein admitted that if the US SEC were to approve a Bitcoin exchange-traded fund from any of the numerous applications on its table, it should be a spot Bitcoin ETF rather than a futures ETF. According to him, this is because they offered more protection to investors. This comes on the heels of a recent filing by Grayscale for a Bitcoin Futures ETF under the 1940 Investment Act.
Gary Gensler Prefers Bitcoin Futures ETF
However, US SEC chairman Gary Gensler favors a Bitcoin Futures ETF more than its counterpart. As he noted in a recent statement, applications for a Futures ETF filed under the 1940 Act were more likely to be considered than any other ETF filings. Citing investors’ protection, he revealed that the Act presented a stronger argument for an ETF application.
Speaking further at the interview, the Grayscale CEO argued that it will be a short-sighted act to approve futures ETF applications before spot filings. Squawk Box host, Joe Kernen agreed with Sonnenshein and stated that it would amount to ‘putting the cart before the horse.’ The focus of the US SEC is the protection of investors, therefore spot BTC ETFs are more apt in terms of costs and specific protection, Sonnenshein added.
Alternatively, Sonnenshein stated that the US SEC could approve Bitcoin Futures ETF and Spot Bitcoin ETF simultaneously, and then allow investors to select based on their preferences. Apart from Grayscale, other US-based investment firms such as VanEck, Proshares and several others have filed for Bitcoin Futures ETF before the US SEC.
VanEck and Proshares recently withdrew their applications for an Ethereum Futures ETF perhaps after realizing that the filings would not fly since regulators were yet to consent to any of the ETF applications on Bitcoin.
El Salvador’s Bitcoin Adoption Bears Massive Momentum, Says Grayscale CEO
Michael Sonnenshein likewise commented on Bitcoin adoption in the Central American country, El Salvador. El Salvador’s Bitcoin law became effective on Tuesday, making it the first nation to make such a move. To celebrate this, Bitcoin proponents around the world decided to purchase $30 worth of Bitcoin in fiat.
This is also in support of the $30 worth of Bitcoin distribution proposed by the country’s president, Nayib Bukele. According to him, every local who downloaded the recently launched national Bitcoin wallet named Chivo would receive the Bitcoin largesse. The president also announced that 400 worth of Bitcoin valued at $21 million was purchased to celebrate the law.
As per Sonnenshein, El Salvador’s Bitcoin adoption bore a lot of momentum and is likely to drive other countries onto such a path as soon as Salvadorans begin to use the digital asset for remittances. In the past, President Bukele has agreed that Bitcoin will make remittances easy, especially for those outside the country.