Grayscale on Bitcoin ETF: This is important week for digital assets



Grayscale CEO Michael Sonnenshein joins CNBC’s ‘Squawk Box’ to discuss the first bitcoin ETF to trade in U.S. markets and what that means for other digital assets. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

The first bitcoin-linked exchange-traded fund will make its debut officially on Tuesday.

The much-anticipated ETF from ProShares, which will track the bitcoin futures market, will begin trading Tuesday on the NYSE under the ticker “BITO,” the company confirmed.


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“We believe a multitude of investors have been eagerly awaiting the launch of a bitcoin-linked ETF after years of efforts to launch one,” ProShares CEO Michael L. Sapir said in a statement Monday. “BITO will open up exposure to bitcoin to a large segment of investors who have a brokerage account and are comfortable buying stocks and ETFs, but do not desire to go through the hassle and learning curve of establishing another account with a cryptocurrency provider … or are concerned that these providers may be unregulated and subject to security risks.”

The price of bitcoin climbed more than 2% on Monday to $62,041.84, according to Coin Metrics. Many investors are watching to see if bitcoin will jump above $64,800 this week to reach a new all-time high.

Bitcoin futures ETFs will also be a big regulatory feat for the still young crypto industry, which has long struggled to cement crypto’s place in the highly regulated financial world. Four more ETF providers are hoping to move forward with trading this month. Invesco’s could come as soon as this week.

“This will be probably the biggest endorsement from the SEC for crypto,” said Ian Balina, CEO of the data and analytics firm Token Metrics, who also noted that regulators globally have been at odds with the crypto industry for years and “impeded the acceptance of crypto” by retail investors. “This will be a floodgate of new capital and new people into the space.”

This crop of ETFs falls short of what the crypto industry ultimately wants: funds that invest directly in cryptocurrencies.

Since 2017 at least 10 asset managers have sought approval to launch spot bitcoin ETFs, which would give investors a vehicle through which to buy bitcoin itself, rather than derivatives tied to it. They were all rejected by the Securities and Exchange Commission, then headed by Jay Clayton, which maintained none of them were able to show the market is resistant to manipulation. In an August speech, SEC Chair Gary Gensler said he would favor investment vehicles that include futures, and a rush of bitcoin futures ETF applications followed.

Investing in a futures-based ETF would not be the same thing as investing directly in bitcoin. A futures contract is an agreement to buy or sell an asset at a future date at an agreed-upon price. A futures-based ETF tracks cash-settled futures contracts, not the price of the asset itself.

“The all-in cost of a futures-based ETF could be in the 5% to 10% range once you take into account the annualized roll yield,” said Matt Hougan, chief investment officer at Bitwise Asset Management, which has its own application for a bitcoin futures ETF in line at the SEC.

Annualized roll yield is the return a futures investor captures on top of the change in the price of the underlying asset.

“Futures-based ETFs are also more confusing,” Hougan added. “They have challenges like position limit and official dilution, and they can’t get 100% exposure to the futures market.”

There are four bitcoin futures ETFs lined up for review in October, from ProShares, Valkyrie, Invesco and Van Eck. They’ll be allowed to move forward and list 75 days after their paperwork was filed if the SEC doesn’t intervene within that period.
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49 thoughts on “Grayscale on Bitcoin ETF: This is important week for digital assets

  • January 13, 2022 at 10:33 pm
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    Grayscale doesn't even have enough Bitcoins, to support an ETF. 🪙 Greyscale Bitcoin ETF, would only open a new channel for fraud using Bitcoin, by large-scaled Racketeers. 🧾 That $ cash, that would be used to support more crime! All they ever did was create foolish, 'valueless forks', in Bitcoin blockchain. 💸

    Reply
  • January 13, 2022 at 10:33 pm
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    Why are these CNBC besterds always trying to hurt bitcoin?

    Reply
  • January 13, 2022 at 10:33 pm
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    Yeah it’ll be interesting to see if go up again with good bitcoin news

    Reply
  • January 13, 2022 at 10:33 pm
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    Most people think… investing in crypto is all about buying coin and leaving it to rise,😀😀common it takes much analysis to be a successful crypto trader

    Reply
  • January 13, 2022 at 10:33 pm
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    I can't fill my car up or buy groceries with a non existent fake coin.what a joke.invest in toilet paper,at least it's real.

    Reply
  • January 13, 2022 at 10:33 pm
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    Successful people don't become that way overnight. most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

    Reply
  • January 13, 2022 at 10:33 pm
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    Investing in forex and crypto trading has made a lot of young investor millionaires, taking the right direction and investing for the future has been my prior motive. started investing with a professional trade who helps me out' Expert Mrs patricia turner

    Reply
  • January 13, 2022 at 10:33 pm
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    when Bitcoin was $33000 more than half a year ago, GBTC was about $33. Today, Bitcoin is $65000, and GBTC is $51. So is GBTC a scam? Or is it "the gain is not your gain. you get less" kind of fund

    Reply
  • January 13, 2022 at 10:33 pm
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    The Bitcoin market is home to endless financial opportunities,bif you are not focused you will get sucked in crovwd thinking, but thanks to expert Mrs Tessy for is contribution in the crypto space without her a lot of us will be lost in a day trading.

    Reply
  • January 13, 2022 at 10:33 pm
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    I'm.. 50 a.n.d m.y. husband 54 we are both retired with over $3 million in net worth and no debt's. Currently living smart and frugal with our money.serving and investing life style in the stock market made it possible for us this early even till now we earn weekly. Thanks to fire movement.

    Reply
  • January 13, 2022 at 10:33 pm
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    Cypherpunk Holdings (HODL) btc holding co. stock

    Reply
  • January 13, 2022 at 10:33 pm
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    Forex and crypto stock made me rich in a young age am not saying it easy to do but thats why am here to help you guys and give you true advice from my heart,

    Reply
  • January 13, 2022 at 10:33 pm
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    Hello I'm new to forex trade And have been making huge losses but I recently see a lot of people earning from it. Can someone please tell me what I'm doing wrong

    Reply
  • January 13, 2022 at 10:33 pm
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    Amazing Content. The general market for some days has been going up and down and even the crypto market is not left out, but the good thing is that every market gives us a certain leverage to benefits from. For me, i'm taking full advantage to continue bitcoin day trading so as to grow a very strong portfolio ahead of the major bull market after this short correction. Pro trader Prof Greg Darrell deserves all praises from me due to his unfailing efforts, signals and guidance towards his traders. I've gained 10.3btc trading with his signals and services .

    Reply
  • January 13, 2022 at 10:33 pm
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    sold BTC to buy more DOGE and SHIB. YOLO

    Reply
  • January 13, 2022 at 10:33 pm
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    Investing in Bitcoin has made a lot of young investor millionaires, taking the right direction and investing for the future has been my prior motive. started investing with a professional trade who helps me out' Mrs Katarina

    Reply
  • January 13, 2022 at 10:33 pm
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    Its wishful thinking but…. I pray that they the elites get every last sucker into this scam and wipe all of you completely out of your wealth. I will celebrate your demise 🙏

    Reply
  • January 13, 2022 at 10:33 pm
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    Stop showing bitcoin as manufactured gold coins. It's an oxymoron!

    Reply
  • January 13, 2022 at 10:33 pm
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    (ELON) COIN IS MAKING MILLIONAIRES!!
    $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

    Reply
  • January 13, 2022 at 10:33 pm
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    I'M NEW TO BTC AND I'VE BEEN MAKING LOSSES TRYING TO MAKE PROFIT MYSELF IN TRADING…I THOUGHT TRADING DEMO ACCOUNT IS JUST LIKE TRADING THE REAL MARKET… CAN ANYONE HELP ME OUT OR AT LEAST ADVISE ME ON WHAT TO DO?

    Reply
  • January 13, 2022 at 10:33 pm
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    <I respect your work mate, because you are pointing people in the right direction, this is the FOMO October for incoming dip in November . It is manipulated but that can be a good thing if you understand it. We should all know that when these reports are bullish take some off to the side lines, when news gets bearish start buying. "Keep it simple simple" that bear/ correction was the best thing that happened me. but all thanks to Seth Leonard, for his amazing skills for help me to earn 20 BTC through trading chart. I believe we are in the spring phase

    Reply
  • January 13, 2022 at 10:33 pm
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    POOR MINDSET IMMEDIATELY SEES A SURPLUS AS AN OPPORTUNITY FOR CONSUMPTION RICH MINDSET SEEKS TO SPEND THEIR TIME** RESOURCES,AND ENERGY ON WORK THAT CONTINUES TO PAY OFF LONG AFTER THE EFFORT HAS BEEN INVESTED
    Like The Post And Be Blessedly…..

    Reply
  • January 13, 2022 at 10:33 pm
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    Please I need someone to help me trade or invest in crypto or Forex market because I'm tired of trading in losses myself.i've have blown my account twice and it's frustrating

    Reply
  • January 13, 2022 at 10:33 pm
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    Another buy the rumour sell the news event

    Reply
  • January 13, 2022 at 10:33 pm
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    ☝🖤 As a practical trader that i am and making most of my income through trading i always like to take full advantage of any market i find myself,

    at this moment i so much advise bitcoin day trading so as to grow a very strong portfolio ahead of the major bull market after this short

    correction. Pro trader Logan Peter deserves all praises from me due to his unfailing efforts, signals and guidance towards his traders. I'v gained

    btc trading with his signals and services.. SUPERB !!

    Reply
  • January 13, 2022 at 10:33 pm
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    Spot > Futures

    Reply
  • January 13, 2022 at 10:33 pm
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    Hello, I'm new to Bitcoin trade and I've been making losses but recently I see a lot of people earning from it. Please can someone tell me what I'm doing wrong

    Reply
  • January 13, 2022 at 10:33 pm
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    now it is spreading to ordinary people.

    Reply
  • January 13, 2022 at 10:33 pm
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    Anyone who was around for the 2017 ETF will remember it crashed the price rather than pumped.

    Reply
  • January 13, 2022 at 10:33 pm
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    l recommended a professional broker to you guys sometime ago, can I get person who invested with her
    comment below
    let's gooooo

    Reply
  • January 13, 2022 at 10:33 pm
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    btc is dumb its only valued alot because it only has 21m coins so its capped, people think its rare, just cuz something is rare doesnt mean its valuable lol>>>

    Reply
  • January 13, 2022 at 10:33 pm
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    Nice content, well the price pump is amazing for very early investors or those who got in week ago for the first time otherwise it's just bouncing back to normal price for the rest of us which is good, btc truly is a class of its own, it has no competitors. All the other alts are competing with each other, they are more centralized, and the majority of them are not completed projects. I can't believe it when i hear people selling their btc for alts lol, that why I trade with one of the best analysts since the last bear which i attain maximum success. With a capital of 3BTC i am able to make 11BTC from September implementing trades with tips and info from Prof Tony Max a well renowned trader Live in New York. for better insights, I left his contacts in the comment below take care.

    Reply
  • January 13, 2022 at 10:33 pm
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    Better buy directly at OTC desk

    Reply
  • January 13, 2022 at 10:33 pm
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    <✌️✌️Trade your coins yourself with strategies from Kelly David Patrick, I am already growing my 4.2 btc to 12 btc from September till date>🙌

    Reply
  • January 13, 2022 at 10:33 pm
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    This guy is killing his word-a-day calendar!

    Reply
  • January 13, 2022 at 10:33 pm
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    kramer is a "entertainer"

    Reply
  • January 13, 2022 at 10:33 pm
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    BS they can bet on it without buying it. Gov is protecting themselves

    Reply
  • January 13, 2022 at 10:33 pm
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    Cramer sold his bitcoin. Lmao 🤣. Idiot !

    Reply
  • January 13, 2022 at 10:33 pm
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    Another awesome video! ❤️❤️ Am investing my time and money in crypto now, this new price is a clear sign for new investors to come in ✅✅…

    Reply
  • January 13, 2022 at 10:33 pm
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    <✌️✌️Trade your coins yourself with strategies from Kelly Patrick, I am already growing my 4.2 btc to 12 btc from September till date>🙌

    Reply
  • January 13, 2022 at 10:33 pm
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    The trading market is constantly evolving with new features, trading opportunities, financial swings with sudden surprises around every corner. The best thing is to stay in shape and don’t let anything catch you on the wrong foot.

    Reply
  • January 13, 2022 at 10:33 pm
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    Anyone who knows anything about crypto doesnt care.

    Reply
  • January 13, 2022 at 10:33 pm
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    Successful people don't become that way overnight .most people you see as a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..

    Reply
  • January 13, 2022 at 10:33 pm
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    Buy BTC and holdl. And if it goes down, buy some more. Peace.

    Reply
  • January 13, 2022 at 10:33 pm
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    More paper money for ya BTC holders. When is the next trend?

    Reply
  • January 13, 2022 at 10:33 pm
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    God, what terrible bias the anchor on this interview holds. What ever happened to objective perspective and coverage??

    Reply

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