Here you will find everything you need to know about the latest Grayscale Seclectures

Here you will find everything you need to know about the latest Grayscale Seclectures

After Grayscale had presented his first oral arguments in his complaint in front of the Securities and Exchange Commission (SEC) on Tuesday, CEO Michael Sonnenshein "really encouraged" it.

The executive spoke on Wednesday about the core of Grayscal's argument and why the refusal of the SEC to approve a Bitcoin spot ETF, was "arbitrary and moody".

The relationship between Bitcoin Futures and Spot

During an interview with CNBC on Wednesday, the Grayscale CEO repeated the central case of its company: the SEC continues to approved Bitcoin futures ETFs while it is denying Bitcoin-Spot-ETFs.

After approval of the first Bitcoin futures ETF in October 2021, the SEC rejected various spot ETF applications-including the application of Grayscale-and claims that fraud and manipulation in these markets cannot be recognized.

Grayscale has meanwhile claimed that a surveillance agreement with the regulated CME-Bitcoin futures market should be sufficient-which has a correlation rate of 99.9 % with the Bitcoin Spot Prize.

"We were consistent throughout the process: the ETF application, the legal dispute, the oral negotiations," said Sonnenhein. "We hope that the court will be convinced by these arguments."

On Tuesday, the SEC argued before the Court of Appeal that there was not enough evidence that the futures market of potential manipulations on the Spotmarkt are exactly reflected-but the judges were skeptical about their claims. The market interpreted the hearing as a victory for Grayscale, since GBTC - the gigantic Bitcoin Trust of the company - has pumped around 16 % since its implementation.

Sonnenshein has fought for years to convert this trust into a Bitcoin Spot ETF, which would enable GBTC shares to follow the Bitcoin price carefully. Some have claimed that more regulation of the crypto industry is necessary before the transition can take place - but sunshine rejected this premise:

"No new laws are required to further bring GBTC into the regulatory area," he told CNBC. "Bringing it into an ETF wrapper would continue to protect investors."

the Alameda process

While Grayscale starts its offensive against the SEC, the company is flanked with charges by Sam Bankman-Frieds bankrot.

In cooperation with the FTX debtors, the company demands that Grayscale make its GBTC shares exchangeable against the underlying Bitcoin in order to help the bankrupt company to regain part of its lost assets within the fund. It was also claimed that Grayscale had violated his trust agreements by "exorbitant" administrative fees through which the fund had taken over $ 1.3 billion.

Sunshine argues that the lawsuit was a "incorrectly led complaint" and that the high fees of GBTC on the "construct" around the operation of the investment are due to "differ from stock -based products".

"This is the best long -term product structure and ultimately the one that will release the greatest value for investors, including people like Alameda," he said.

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