Stamford, Connecticut Tuesday, February 13, 2024 – Grayscale Investments CEO Michael Sonnenshein urged regulators on Monday, February 5, to swiftly approve exchange-traded fund (ETF) options for Bitcoin spot assets, highlighting their potential benefits for investors and price discovery. 1
In an X post, Sonnenshein argued that listed options on Bitcoin spot ETFs would “equip investors with powerful tools to navigate market fluctuations and achieve their desired outcomes, such as generating income.”
He contrasted them with Bitcoin futures ETFs, which he noted primarily cater to institutional investors focused on hedging strategies.
Sonnenshein emphasized the potential benefits of options for price discovery, stating that they “can help facilitate a more transparent and efficient valuation of Bitcoin by increasing participation and liquidity in the options market.”
He pointed to the successful launch of Bitcoin futures ETF options in late 2023 as evidence of a smooth entry pathway for similar spot ETF options.
While Bitcoin futures ETFs received approval in the United States, spot ETFs continue to face regulatory hurdles. The Securities and Exchange Commission (SEC) has yet to greenlight a direct investment vehicle for Bitcoin, citing concerns about market manipulation and potential investor risks.
He argued in a blog post that the regulatory treatment of spot Bitcoin ETFs and their options should mirror that of Bitcoin futures ETFs and their options.
Sonnenshein pointed out the apparent inconsistency in approval processes, noting that while options for Bitcoin futures ETFs received automatic approval, those for spot Bitcoin ETFs are facing a longer review process similar to the initial approval of the underlying funds.
- Bitcoin ETF Approval: https://twitter.com/Sonnenshein/status/1754487928418369599[↩]
