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.

38:38

Creator website

Episode guests

Michael Sonnenshein

AI Chapters

Episode notes

Intro

3min

Grayscale's ETF Battle with the SEC

7min

Navigating Legal Challenges and Market Maneuvers in Cryptocurrency

2min

Navigating Investment Dynamics in Crypto

10min

Legal Challenges and Weekly Crypto News Highlights

5min

Crypto Collapse Aftermath

9min

Michael Sonnenshein, CEO of Grayscale Investments, gives an overview of his firm’s case against the SEC, which has denied requests to turn Grayscale’s bitcoin trust into an exchange-traded fund (ETF). With oral arguments kicking off March 7, Sonnenshein lays out what a worst-case “tender offer” would entail and whether DCG CEO Barry Silbert has any say over GBTC’s fate.

Show highlights:

why Grayscale charges higher fees than, say, the average ETF
what Grayscale will do if it loses its case against the SEC
why Grayscale has not filed for Regulation M relief
Michael's comments on Gemini liquidating 31 million shares of GBTC
the reason behind the October 2022 timing of Grayscale changing GBTC's “authorized participant”
the relationship between Grayscale and DCG, and Barry Silbert's involvement in Grayscale's operations
why the trust agreement of GBTC was changed

Thank you to our sponsors!

Crypto.com

Guest

Michael Sonnenshein:

Twitter

Links

CNBC: Court sets date for oral arguments in Grayscale's challenge of SEC's bitcoin ETF decision
Reuters:
Grayscale would appeal lawsuit against SEC if court rejects case, CEO says
Ruling in Grayscale-U.S. SEC lawsuit likely within a year
MarketWatch: Grayscale may ‘ultimately’ consider tender offer for bitcoin trust, CEO says
CoinTelegraph: Grayscale terminates Bitcoin trust material agreements with Genesis
CoinDesk: Grayscale Slams SEC's 'Unreasonable' Barring of Spot Bitcoin ETFs
Bloomberg: Hedge Fund Sues Grayscale for Data on Battered Bitcoin Trust
Bitcoinist: Here's What A Reg M Will Entail For Genesis, DCG And Bitcoin
Why Investment Experts Say a Spot Bitcoin ETF Would Be Superior to Bitcoin Futures ETFs by Laura Shin
Andrew Parish’s tweet on the possibility of the case going to the Supreme Court
Grayscale’s End of Year CEO Letter to Investors
Ycharts: GBTC Discount or Premium to NAV

Previous coverage of Unchained on GBTC:

Learn more about your ad choices. Visit megaphone.fm/adchoices

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.