OK SEC An exchange-traded fund (ETF) based on short positions in bitcoin futures is a positive signal for the crypto industry. This view was expressed by Michael Sonnenschein, CEO of Grayscale Investments.

Approval of an ETF that provides reverse exposure #Bitcoin It can be a positive sign for #crypto. Here’s a 🧵 about why…

— Sonnenshein (@sonnenshein) 21 June 2022

On Tuesday, June 21, trading began on the ProShares Short Bitcoin Strategy ETF (ticker symbol BITI), which allows investors to profit from the drop in the price of the first cryptocurrency.

“I am convinced that the approval of every Bitcoin-related investment product demonstrates the SEC’s growing comfort with BTC and cryptocurrencies more broadly,” Sonnenschein wrote.

That said, this also applies to ProShares ETFs, although the asset’s price is subject to back exposure.

Sonnenschein recalled that while rejecting Bitcoin-based spot exchange-traded funds, the regulator expressed concerns about the “maturity of the underlying markets” and potential “fraud and manipulation.”

“How can we interpret BITI’s entry into the market other than greater recognition? [SEC] Bitcoin maturity,” said Sonnenschein.

According to him, the appearance of the ProShares fund means that the regulator sees the cryptocurrency-backed derivatives market as credible enough to offer retail investors short positions.

Sonnenschein, “Wouldn’t the next logical step be to approve a spot bitcoin ETF?” she asked.

Recall that Grayscale submitted an application in October 2021 to convert the GBTC bitcoin trust into an exchange-traded fund based on the spot price of the cryptocurrency. The organizer has to make a decision by 6 July.

In March, Sonnenschein allowed the opportunity to sue the SEC in case of refusal.

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