On 11 January 2024, Michael Sonnenshein, CEO of Grayscale, appeared on Bloomberg TV to discuss the U.S. SEC’s recent approval of several spot Bitcoin ETFs. Sonnenshein began by expressing his excitement over this historic day, marking the culmination of a decade’s work.
He thanked investors for their patience and the Grayscale team for their efforts, especially highlighting the successful lawsuit against the regulator leading to the uplisting of GBTC on the New York Stock Exchange as the world’s second-largest commodity ETF.
He then discussed the differentiation of GBTC in the market. He said that despite the presence of 11 different spot Bitcoin ETFs, GBTC stands out with its $28 billion in assets and significant liquidity.
He acknowledged that while GBTC may not cater to all investors, its 10-year track record, substantial AUM, and liquidity, backed by a crypto specialist, make it an attractive option for many.
Addressing Bitcoin’s price volatility on the day of the ETF launch, Sonnenshein noted that GBTC was one of the few ETFs trading positively. He reported a smooth uplisting and significant trading volumes, exceeding $1.5 billion notionally.Sonnenshein also touched upon Grayscale’s broader product range, including Ethereum, Litecoin, and Solana trusts.
He revealed plans to uplist the Grayscale Ethereum Trust to a spot Ethereum ETF, following the path paved by GBTC.
Regarding fee structures, Sonnenshein emphasized Grayscale’s commitment to reducing fees, having already done so by 25%.
He contrasted GBTC’s established market presence with new issuers who lack a solid investor base and trading volumes.In terms of net flows, Sonnenshein stated it was too early to comment on the direction of flows since GBTC’s conversion to an ETF. He highlighted that GBTC has seen both inflows and outflows since its inception in 2015.Finally,
Sonnenshein briefly commented on ongoing litigation involving Grayscale, focusing on the fulfillment of their promise to investors to uplist GBTC as a spot Bitcoin ETF. Looking ahead, he mentioned plans to engage with investors and the investment community, thanking them for their support in Grayscale’s journey.