Why Grayscale Is Suing the SEC Over Its Denial of a Bitcoin ETF

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

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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: 

• Bitwise's Latest Plans to Get a Bitcoin ETF Approved
• DCG's Dilemma: Should It Sell Its GBTC Holdings to Repay Gemini?
• Gemini vs. DCG Is Heating Up. Could Gemini Force Genesis Into Bankruptcy?
• ‘The Last Big Whale’: Why the Crypto Contagion of 2022 Eventually Hit Genesis

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