Unchained Why Grayscale Is Suing the SEC Over Its Denial of a Bitcoin ETF - Ep. 448
Jan 27, 2023
Michael Sonnenshein, CEO of Grayscale Investments and a key player in the legal battle over the company’s Bitcoin trust, discusses the ongoing lawsuit against the SEC for a Bitcoin ETF. He highlights the implications of a worst-case 'tender offer' if they lose. Sonnenshein also explains Grayscale’s fee structure, the impact of Gemini’s liquidation of GBTC shares, and the operational dynamics between Grayscale and its parent company, DCG. This conversation sheds light on the future of cryptocurrency investments amid regulatory challenges.
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GBTC Fees
- GBTC's 2% fee, tied to NAV, results in nearly 4% annually due to the current discount.
- This is high, especially since investors cannot redeem shares for Bitcoin.
Grayscale's ETF Focus
- Grayscale's main goal has always been an ETF, not just a Bitcoin trust.
- They pursued an ETF format from the start, intending to lower fees upon conversion.
Tender Offer
- Consider a tender offer if judicial options are exhausted and the SEC continues denying ETF conversion.
- This offer's details would require SEC and shareholder approval for fairness.
