Grayscale Investments has sent a letter to the Securities and Exchange Commission (SEC) to defend the approval of options on Grayscale’s Bitcoin Trust (GBTC).
Grayscale Investments has sent a letter to the Securities and Exchange Commission (SEC) to defend the approval of options on Grayscale’s Bitcoin Trust (GBTC).
Nate Geraci, president of ETF Store, speculated about the possibility of an imminent lawsuit as Grayscale’s letter to the SEC emphasized what they considered “unfair discrimination” against shareholders.
Grayscale’s push for equal treatment
Grayscale has been lobbying the SEC to extend options approval to its bitcoin spot ETF, arguing for a level playing field.
Michael Sonnenshein, CEO of Grayscale, articulated in the letter that denying GBTC the ability to offer options would disadvantage its investors and hinder the product’s appeal to potential investors.
Notably, the SEC previously approved options trading for ETFs linked to bitcoin futures, setting a precedent that Grayscale believes should also apply to its product.
The crypto asset manager advocates GBTC options to facilitate better price discovery, market navigation, and hedging strategies for investors.
The way to follow
Sonnenshein has been outspoken about the need to establish a substantial Bitcoin spot ETF options market.
He notes that options for bitcoin futures ETFs became available a day after trading began, but spot Bitcoin ETFs are lagging behind due to the complexities involved in regulatory approvals.
The disparity in treatment between futures and spot bitcoin ETFs has been a point of contention, and Sonnenshein emphasized the benefits of options for all investors.
