Sonnenshein advances another reason to endorse the Grayscale Bitcoin Trust (GBTC)

Now that the date for the Grayscale vs. SEC trial has been set, Michael Sonnenshein is pulling out all the stops. Because in his eyes, GBTC deserves to be traded on the stock exchange as a Bitcoin spot ETF. An initiative that the SEC did not want to approve. Tuesday, March 7, the case may experience a new outcome. The CEO of Grayscale Investment must probably hope that the judge will rule in his favor.

Billions of dollars just after converting GBTC

For Michael Sonnenshein, all means are good to tip the scales in favor of the GBTC. If he is not denouncing the actions of the SEC, he praises the merits of this digital asset specially dedicated to institutions.

In an article published on February 26 on Cointelegraphwe have learned that the CEO of Grayscale has suggested that the GBTC could report “ a few billion dollars to investors if their application is approved. If the United States Security and Exchange were to validate its conversion to a spot ETF based on Bitcoin (BTC), Grayscale investors will also benefit from optimal protection. And at the same time, they will regain the true value of their assets.

The billions of dollars mentioned by Mr. Sonnenshein would come instantly. Because the fund would bleed “up to its net asset value (NAV)” overnight “, he underlined during an interview on What Bitcoin Did by Peter McCormack.

Note that the GBTC is currently trading at a discount based on its NAV. But in the event of conversion into an ETF, this discount as well as the premiums will disappear. They will give way to a ” arbitration mechanism “.

The SEC does not admit defeat

According to Michael Sonnenshein, the SEC has ” violated the law on administrative procedures in its toughness against GBTC’s approval as a spot Bitcoin ETF. This rejection dating from June 2022 would demonstrate that the SEC acted arbitrarily. An attitude that no regulator worthy of the name should adopt in any case.

But the SEC doesn’t seem ready to be intimidated by a company with 1 million investor accounts like Grayscale. Reason why she filed a 73-page brief with the court last December. We are awaiting the outcome of the hearing next week.

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