The Launch Of Proshares Short BTC ETF Is Good For The Crypto Industry: Michael Sonnenshein
- Grayscale CEO is convinced that the US SEC is becoming more comfortable with crypto following recent Bitcoin ETF approval.
Grayscale CEO Michael Sonnenshein stated that the US SEC’s approval of ProShares’ short BTC ETF is a positive sign for the crypto sector.
Sonnenshein wrote a Twitter thread on June 21 to explain why he is convinced that the US SEC is relaxing its hard stance on the leading digital asset. According to him, the approval of ProShares’ BTC-linked investment products shows that the SEC’s discomfort with the top digital currency is gradually waning.
Bitcoin ETF Close Up
He noted that the SEC’s main reason for not approving a Bitcoin spot ETF is the possibility of fraud. Also, the SEC is concerned that the crypto market is not yet mature enough to have a spot ETF.
But, on Monday, the financial watchdog approved ProShares’ proposal for a short BTC strategy. Through this strategy, investors get to invest in the inverse performance of Bitcoin. The ETF was launched on New York Stock Exchange on June 21 with the ticker symbol, BITI.
Sonnenshein further interpreted the approval to mean that the SEC now considers the crypto market mature enough to have a spot ETF. The Grayscale CEO added that a derivatives market supports Bitcoin’s price discovery.
Also, it is backed by a solid 2-part market that supports several long products. Hence, retail investors can get enough short-term exposure. In his concluding remarks, Sonnenshein noted that the next logical step for the SEC is to approve the much-expected Bitcoin spot ETF.
Despite approving various Bitcoin ETF products, the SEC hasn’t approved any spot-based BTC ETF. However, Sonnenshein believes that the time may have come for the SEC’s stance to change.
The top crypto players in the US have often stated that they are disappointed at the SEC’s insistence on not approving a Bitcoin spot ETF.
SEC commissioner (also known as crypto mum), Hester Pierce, has made several public calls for the SEC to change its stance on not approving spot BTC ETFs. The reluctance to approve a spot BTC ETF is one reason Grayscale threatens legal action against the SEC.
Grayscale has requested approval from the SEC to convert its famous Bitcoin Trust (GBTC) to a spot ETF. However, the SEC is yet to approve its proposal. The asset management firm has stated that it would institute legal action against the financial regulator if it didn’t approve Grayscale’s proposal at the next scheduled date.
Sonnenshein also weighs in on whether the recent BTC price crash represents its bottom. The Grayscale CEO said he wouldn’t call the BTC price correction the bottom.
On June 18, BTC’s price plunged to $18,000 on some exchanges before a slight recovery before the weekend was over. On Tuesday, the price of the leading digital currency rose to $21,708. However, it currently trades at , according to the latest Coinmarketcap data.