Grayscale CEO Michael Sonnhenshein recently discussed his company’s victory in its lawsuit against the Securities and Exchange Commission (SEC) during an interview with CNBC’s Squawk Box. He mentioned that Grayscale’s fees are prepared to drop if its Bitcoin trust successfully converts into an ETF.
Sonnhenshein explained that the SEC now has 45 days to request a “rehearing” of the case, and he emphasized the need to follow the federal rules of appellate procedure. The court will issue a final mandate outlining the next operational steps.
The SEC is currently reviewing the court’s decision to determine its next course of action. The court ruled that the SEC was being “arbitrary and capricious” by denying Grayscale’s conversion into a Bitcoin spot ETF while approving Bitcoin futures ETFs. The court found the SEC’s justifications for this denial to be “unreasonable.”
The SEC has several options moving forward. They can appeal to the Supreme Court, approve Grayscale’s application, deny it based on another reason, or withdraw its prior approvals of Bitcoin futures ETFs for consistency. After losing a major lawsuit to Ripple last month, the SEC chose to appeal that case.
Sonnhenshein argued that continuing to deny Grayscale’s application would directly violate the SEC’s mandate and harm Grayscale’s current investors who are expecting the conversion to occur.
Regarding fees, Sonnhenshein expressed confidence that Grayscale’s spot ETF will be approved and stated that the fund will lower fees when that happens. Grayscale has previously charged shareholders a 2% annual fee, which critics consider exorbitant compared to existing Bitcoin spot ETFs that charge a 1% management fee. Sonnhenshein attributed Grayscale’s high fees to legal costs.
Sonnhenshein dismissed concerns about the timing of Grayscale’s potential approval, stating that the Investment community is certain that crypto as an asset class is here to stay.
In conclusion, Grayscale’s CEO is optimistic about the approval of the company’s spot ETF and expects fees to decrease as a result. The SEC has options for its next steps and will need to consider the court’s ruling and potential harm to investors if the application is denied. The investment community remains confident in the future of crypto..
#Grayscale #CEO #Talks #Steps #Defeating #SEC #Court
Sonnhenshein explained that the SEC now has 45 days to request a “rehearing” of the case, and he emphasized the need to follow the federal rules of appellate procedure. The court will issue a final mandate outlining the next operational steps.
The SEC is currently reviewing the court’s decision to determine its next course of action. The court ruled that the SEC was being “arbitrary and capricious” by denying Grayscale’s conversion into a Bitcoin spot ETF while approving Bitcoin futures ETFs. The court found the SEC’s justifications for this denial to be “unreasonable.”
The SEC has several options moving forward. They can appeal to the Supreme Court, approve Grayscale’s application, deny it based on another reason, or withdraw its prior approvals of Bitcoin futures ETFs for consistency. After losing a major lawsuit to Ripple last month, the SEC chose to appeal that case.
Sonnhenshein argued that continuing to deny Grayscale’s application would directly violate the SEC’s mandate and harm Grayscale’s current investors who are expecting the conversion to occur.
Regarding fees, Sonnhenshein expressed confidence that Grayscale’s spot ETF will be approved and stated that the fund will lower fees when that happens. Grayscale has previously charged shareholders a 2% annual fee, which critics consider exorbitant compared to existing Bitcoin spot ETFs that charge a 1% management fee. Sonnhenshein attributed Grayscale’s high fees to legal costs.
Sonnhenshein dismissed concerns about the timing of Grayscale’s potential approval, stating that the Investment community is certain that crypto as an asset class is here to stay.
In conclusion, Grayscale’s CEO is optimistic about the approval of the company’s spot ETF and expects fees to decrease as a result. The SEC has options for its next steps and will need to consider the court’s ruling and potential harm to investors if the application is denied. The investment community remains confident in the future of crypto..
#Grayscale #CEO #Talks #Steps #Defeating #SEC #Court
