Home Business News UK advisers and wealth managers divided on Grayscale Bitcoin court win

UK advisers and wealth managers divided on Grayscale Bitcoin court win

by LLB Finance Reporter
31st Aug 23 2:36 pm

US-based crypto-asset manager, Grayscale, this week won a court ruling against the Securities and Exchange Commission (SEC) over its attempt to launch a US-listed exchange traded fund that will track the price of Bitcoin.

The SEC had denied Grayscale’s application to convert its Bitcoin Trust into an ETF but was overruled by a Court of Appeals in DC. The price of Bitcoin and other leading crypto coins surged on the news of Tuesday’s decision.

Reflecting on the win, Grayscale CEO Michael Sonnenshein said, “This is a historic milestone for American investors, the Bitcoin ecosystem, and all those who have been advocating for Bitcoin exposure through the added protections of the ETF wrapper.

“Grayscale has adhered to U.S. financial rules and regulations in building our product suite since our founding in 2013, underpinned by one fundamental belief: investors deserve transparent, regulated access to crypto. It’s incredibly exciting that we are one step closer to making a U.S. spot Bitcoin ETF a reality.”

In the UK, financial advisers and wealth managers were divided about the decision. Wes Wilkes, CEO at the Newcastle-under-Lyme-based wealth manager, Net-Worth Ntwrk, was broadly positive.

Wilkes said, “The Grayscale case and decision are worthy of the coverage they got. This decision opens the door to a Bitcoin ETF in the US, a regulated vehicle and of course access to billions of pounds of investors’ money. Wealth managers can ill afford to ignore this development or the crypto ecosystem as a whole.

“Whilst it remains nascent relative to the rest of the ‘investing world’, many of our clients hold, trade or play with crypto, though we do not include their holdings in any financial plan or use them as part of their asset base.

“It is always an interesting discussion point and I believe that as long as people are using disposable money that would not hurt them should it go to zero, then whilst we cannot advise or opinionise on it, we appreciate being made aware of it.”

Leave a Comment

You may also like


Sign up to our daily news alerts

[ms-form id=1]