Exclusive: Grayscale CEO 'Wouldn't Rule Out' Future Bitcoin ETF Launch In US
Grayscale CEO Michael Sonnenshein said the firm would not rule out launching a Bitcoin (Crypto: BTC) ETF in the future if the SEC ever grants approval for such a product.
Sonnenshein On Bitcoin Investments: While it's technically not an exchange-traded fund by definition, Grayscale CEO Michael Sonnenshein told Benzinga he believes an eventual ETF launch in the U.S. is likely.
"I certainly wouldn't rule it out," he said on Benzinga's PreMarket Prep Wednesday.
"I think the important thing to note is that investors aren't waiting for an ETF. Investors are not sitting on the sidelines and not getting involved in crypto because there isn't an ETF yet. We're seeing evermore participation in the market across everything from retail investors all the way to the other end of the spectrum, endowments, pensions, and now even corporates."
Alhough the approval of a bitcoin ETF would create competition for Grayscale products, Sonnenshein said he sees it as a net positive.
"The addition of new products, or new ability for investors to gain exposure to this asset class we view generally as a good thing. It almost creates this normalization of crypto."
Canada OKs Bitcoin ETFs: U.S. regulators could follow Canada's lead and soon approve the launch of a bitcoin ETF.
Both funds trade on the Toronto Stock Exchange. In its first day of trading last week, BTCC was the most-traded ETF in Canada.
Bitcoin's Run Not A Surprise: Bitcoin's strong momentum in early 2021 shouldn't come as a surprise, Sonnenshein said, as he said 2020 was a "watershed moment" for the digital currency asset class as a whole.
Grayscale raised more than $5.7 billion across its family of investment products as some of the world's most famous and experienced investors publicly supported the space, he said.
These new endorsements have created a tailwind for additional participation, Sonnenshein said, adding that the broader investment community at the very least now acknowledges cryptocurrencies as a real asset class.
Watch the full interview with Michael Sonnenshein in the clip below.
PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga's YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.
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