Grayscale Investments CEO Michael Sonnenshein opined that the U.S. SEC would be making a mistake if it approves a Bitcoin futures ETF first ahead of a spot ETF.
<h2><strong>SEC Should Approve Both BTC Futures and Spot Together</strong></h2>
In response to the recent remarks made by <a href="https://www.cryptoknowmics.com/news/sec-chair-gary-genslers-comments-concern-bitcoin-etf-prospects/">SEC Chair Gary Gensler</a> about the potential approval of America’s first Bitcoin ETF, the CEO of the investment firm running the world’s largest Bitcoin fund has an otherwise differing view on it.

Michael Sonnenshein, the head of Grayscale Investments told <a href="https://www.cnbc.com/2021/09/07/bitcoin-etf-grayscale-ceo-calls-sec-short-sighted-after-regulators-comments.html" target="_blank" rel="nofollow noopener">CNBC</a> that the regulatory agency would be making an error on its part if it approves a Bitcoin futures ETF ahead of a spot ETF.

Instead, Sonnenshein suggests that the SEC should approve both futures and spot together and let the investors decide for themselves on what they want:
<blockquote><em>“It would be shortsighted of the SEC to allow a futures-based product into the market before a spot product. They really should be allowing both products into the market at the same time and let investors choose which way they want.”</em></blockquote>
Last month, SEC Chairman Gary Gensler revealed its intention to review applications from investment funds looking to launch a Bitcoin futures ETF that trades on the Chicago Mercantile Exchange.
<h2><strong>Approving Spot Bitcoin ETF Could be Risky</strong></h2>
According to Sonnenshein, a futures ETF will cost more in fees due to the intrinsic expense caused by the roll-out of a futures contract as they expire. This could be risky for those who currently hold the <a href="https://www.cryptoknowmics.com/news/grayscale-fund-encourages-to-convert-to-etf-as-a-way-to-save-money/">Grayscale fund</a> as investors may gravitate toward a futures ETF, which could draw the funds away from the flagship Grayscale product, GBTC.
<blockquote><em>“If a futures-based ETF comes to market without the ability for GBTC to convert to an ETF, it has the potential to harm investors who hold tens of billions of dollars’ worth of GBTC today outright, as well as the investors who have exposure to GBTC inside mutual funds, retirement accounts and other places.”</em></blockquote>
The Grayscale CEO overall believes that the regulatory agency wanting to approve a Bitcoin futures ETF is still bullish for the leading cryptocurrency.

SEC Should First Approve Spot Bitcoin ETF than Futures ETF: Grayscale CEO

Grayscale Investments CEO opined that the U.S. SEC would be making a mistake if it approves a Bitcoin futures ETF first ahead of a spot ETF.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

SEC Should First Approve Spot Bitcoin ETF than Futures ETF: Grayscale CEO

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