Grayscale Investments CEO Michael Sonnenshein said he "cannot imagine" why the US Securities and Exchange Commission (SEC) "would not want" to protect Grayscale investors and return the true value of assets, in a recent podcast interview.
In an interview with What Bitcoin Did, a popular podcast Introduced by Peter McCormack, on Feb. 25, Sonnenshein explained that the SEC "violated administrative procedures law" by denying that Grayscale Bitcoin Trust (GBTC) was a detect bitcoin (BTC) exchange-traded fund (ETF), in June 2022.
He explained that this law ensures that the regulator does not show “favoritism” or act “arbitrarily”, adding that by approving the Bitcoin Futures ETF, while rejecting the “GBTC conversion”, the SEC has acted “arbitrarily”.
Sonnenshein noted that when the SEC began approving the first Bitcoin ETFs, Grayscale took it "as a sign" that the SEC was "really changing its attitude towards Bitcoin."
He claimed that there is actually a "couple of billion dollars" of capital that he would immediately return to investors' pocketsovernight, as the fund would "bleed back" to NAV, upon approval as a spot Bitcoin ETF.
Sonnenshein explained that this is because GBTC currently trades at a discount to its NAV, but if it were to become an ETF, there would "no longer" be a discount or premium, there would be an "arbitrage mechanism." " embedded.
He reiterated that Grayscale is in the process of "sueing the SEC now" and could have a decision challenging the SEC's denial of its initial application, until "fall 2023."
He also noted that Grayscale has more than a "million investor accounts," with investors from around the world counting on the company to "do what's right for them."
Sonnenshein "cannot imagine" why the SEC would not want to "protect investors" and "give them back that value."
It was noted that Grayscale is not going to "shrink" from the fact that it has a "business interest" in this approval, and Sonnenshein noted that if the request to challenge the SEC is denied, Grayscale could appeal the case. in the US Supreme Court.
Related: SEC's 'One-Dimensional' Approach Is Slowing Bitcoin's Progress: Grayscale CEO
This comes after the SEC denied grayscale app to convert its $12 billion Grayscale Bitcoin Trust (GBTC) into a point-based Bitcoin ETF in December 2022, basing its decision on findings that Grayscale's proposal did not sufficiently protect against fraud and manipulation.
The agency had made similar findings in a series of previous requests to create spot-based BTC ETFs.
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