Home
News
For a long time the SEC has been rejecting Spot bitcoin derivatives considering them a threat for general investors but many including GBTC are seeking it
Lately, Grayscale CEO Michael Sonnenshien stated that it’s just a matter of time when the SEC has to approve its bitcoin ETF. This statement was enough to affirm that the company has geared up to go against the regulator authority and file a lawsuit in order to get approval for its financial product. Since the statement of Grayscale Investment LLC CEO, many individuals have come forward to show their support for the company’s offering of bitcoin ETF.
Now among the list of such supporters, a significant name has been also added. Creator of a Wall Street’s favorite and mostly used fear gauge, Robert Whaley has shown his support for the bid of Grayscale Investment LLC to turn it into the biggest bitcoin fund of the world into an exchange traded product. Whaley created the Cboe Volatility Index (VIX) in 1993.
ALSO READ – Kava Price analysis: KAVA tumbled near 50 EMA Line during short-covering Momentum
Robert Whaley on 25th May, wrote a letter to the United States Securities and Exchange Commission and stated that the officials should approve the application of Grayscale for converting the Grayscale Bitcoin Trust worth $20 billion, in an ETF. Letter of stock market expert has been added to thousands of other such letter writers who wrote after Grayscale launched a campaign to offer comments to the regulatory authority.
Arguments of Whaley were centered around the fact that earlier the SEC had allowed the first bitcoin derivatives backed fund in the US, ProShares Bitcoin Strategy ETF (BITO) that launched in October last year. He further said that BITO was approved along with denying applications repeatedly for crypto ETFs based physically.
Whaley has also compared the Bitcoin future index of Chicago Mercantile Exchange’s returns that is tracked by Bitcoin, to the price index of CoinDesk Bitcoin that GBTC would allow from month of January till May 25. He said that both are almost near perfect substitutes.
Whaley who is also a finance professor at Nashville based Vanderbilt University wrote in the letter that BITO like Futures based Bitcoin ETFs are much costlier and also not that efficient for investors for accessing bitcoin in comparison to what would be a well designed and more transparent spot based GBTC like Bitcoin ETP.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
