A few days after the approval and launch of the ProShares Short Bitcoin-linked Exchange-Traded Fund (ETF), Grayscale CEO noted that the development shows favorable signs for cryptocurrency. On a broader view, Michael Sonnenshein believes that the increasing approvals of crypto-linked investment products indicate SEC’s growing comfort with crypto.
Michael Sonnenshein Reacts to BITI Launch
Over the years, the Securities and Exchange Commission (SEC) which plays regulatory roles has not been very comfortable with cryptocurrency and crypto-linked investment products.
Countless times, the body of regulators has reiterated that financial technology (crypto) lacks maturity and sufficient regulations. Hence, the entity often claims that the crypto market is vulnerable to being manipulated and enabling scam incidents.
On these grounds, the SEC has rejected several Ethereum and Bitcoin crypto exchange-traded funds (ETFs) proposals. However, the recent approval of ProShares Short Bitcoin Strategy ETF (BITI) by the SEC could mean that the body is getting friendly with Bitcoin and cryptos in general.
This act has also received mixed comments from several crypto proponents like the GrayScale CEO. In a Twitter thread, Michael Sonnenshein shared his views. The CEO appears to be uncomfortable with the inverse Bitcoin exposure BITI ETF presents to the market, noting that Grayscale does not currently have plans to offer products that short crypto.
“I am not providing investment advice on $BITI or any other ETF, I’m not “calling the bottom,” and Grayscale does not currently have plans to offer products that short crypto.”
“Bitcoin’s price discovery is supported by not only a healthy two-sided market that underpins multiple long products but also a derivatives market robust enough to offer short exposure to retail investors,” he added.
Grayscale CEO Longs for Spots Bitcoin ETFs
Additionally, he pointed out that the SEC’s approval of BITI exchange-traded fund extensively entails that Bitcoin (BTC) is gradually being seen as a matured asset by regulators. Furthermore, he subtly urges the regulatory body to consider the approval of spots Bitcoin ETFs rather than continuous denial, claiming that it would be a “logical next step” to take.