The European market has emerged as a competitive space with issuers rolling out investment vehicles to cater to the increasing demand, and Grayscale wants a piece of the pie.
According to the Bloomberg report, Grayscale’s Chief Executive Officer Michael Sonnenshein revealed holding meetings with several domestic partners in the region to discuss the timeline. However, details of which exchanges or countries in Europe it wants to rope in to offer products are not yet available. The exec also hasn’t divulged any information about which offerings the company intends to launch first.
In the interview, Sonnenshein highlighted that even though the European Union is unified, Grayscale does not view the entire European market as one. He went on to add,
“Instead we’re going to be very thoughtful, very methodical about each of the financial centers and financial hubs that we ultimately launch in because we recognize the differentiation of investor behaviors and attitudes, and regulatory regimes.”
Grayscale’s expansion news comes days after it made a fresh attempt to get approval from the Securities and Exchange Commission (SEC). In a letter to the commission, Grayscale focused on the legal detail to boost up its request. It is looking to convert its Bitcoin Grayscale Trust (worth roughly $40 billion) into an ETF.
The US regulatory watchdogs have been deliberating whether to approve the exchange-traded funds to hold Bitcoin, rather than derivatives linked to the crypto, for the first time. The SEC has previously asserted it will decide on Grayscale’s application by July this year.
Things have not been very smooth in the US. While prospects of a physical Bitcoin ETF are at a standstill in the country, Grayscale’s Sonnenshein is keen on fighting the SEC if need be. The exec earlier said that “all options are on the table” when asked if he was willing to pursue legal action against the agency.
Europe, on the other hand, has witnessed a slew of issuers launching crypto ETPs in recent months. Last month, more than 70 crypto ETPs received a regulatory nod in the old continent, with a total of $7 billion in assets. The security and convenience of crypto exposures through the regulated infrastructure have proved quite attractive to retail as well as institutional investors in the region.
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