In a significant development for the cryptocurrency market, Grayscale CEO Michael Sonnenshein has expressed his approval of BlackRock and other prominent asset managers joining the competition to launch a spot bitcoin exchange-traded fund (ETF). Grayscale is currently engaged in a legal battle with the Securities and Exchange Commission (SEC) over its blocked attempt to convert its flagship trust into an ETF.
Sonnenshein welcomed the entrance of BlackRock, Fidelity, and other industry heavyweights into the crypto space, considering it a moment of validation. In an interview on CNBC’s “Last Call” segment, he emphasized the impact of the largest asset manager in the world publicly committing to advancing its crypto efforts. Sonnenshein stated that BlackRock’s move adds credibility to the asset class, highlighting its staying power.
Following BlackRock’s filing for a crypto ETF in June, several other notable asset management firms, including Fidelity, Invesco, and WisdomTree, have taken similar steps. Grayscale has played a pioneering role in crypto asset management thus far, with its Grayscale Bitcoin Trust (GBTC) currently holding $19.1 billion in assets under management. However, the trust’s performance has recently lagged, and it currently trades at a 27.5% discount to Net Asset Value, according to data from The Block Research.
Last year, Grayscale filed for the conversion of its signature trust into an ETF, only to face rejection from the SEC. In response, the company took legal action against the regulatory body in June 2022 to compel a reconsideration. Sonnenshein expressed optimism, stating that a successful outcome in the lawsuit could unlock billions of dollars in investor capital. He further noted that transitioning to an ETF structure would provide investors with the additional protection they desire and deserve.
As the race to launch a bitcoin ETF intensifies, the involvement of established financial giants signifies a growing recognition of cryptocurrencies as a legitimate investment class. Grayscale’s CEO welcomes this development as a step forward in establishing trust and credibility within the crypto industry. Investors eagerly await the resolution of Grayscale’s lawsuit, as it could have significant implications for the future of bitcoin ETFs and the broader cryptocurrency market.
The post Grayscale CEO Welcomes BlackRock and Giants to Bitcoin ETF Race, Asserting Asset Class Validity appeared first on BitcoinWorld.
