Gemini CEO Takes a Jab at Grayscale Bitcoin Trust, Calls it ‘Toxic Product’

Cameron Winklevoss, CEO of Gemini has publicly criticized the Grayscale Bitcoin Trust (GBTC) in a series of tweets, referring to it as a ‘toxic product.’ 

Cameron recently took to Twitter to express his frustration with the US Securities and Exchange Commission (SEC) regarding the rejection of Gemini’s application for spot Bitcoin Exchange-Traded Fund (ETF) 10 years ago.

Today marks 10 years since @tyler and I filed for the first spot Bitcoin ETF. The @SECGov's refusal to approve these products for a decade has been a complete and utter disaster for US investors and demonstrates how the SEC is a failed regulator. Here's why:

-"protected"… pic.twitter.com/xmK1xo1iX8

— Cameron Winklevoss (@cameron) July 2, 2023

The CEO argued that the SEC’s denial has deprived US investors of the opportunity to participate in one of the best-performing assets of the past decade. 

Directing Investors to Subpar Products

According to Cameron, the SEC’s rejection of Gemini’s spot Bitcoin ETFs application has driven investors toward suboptimal alternatives, such as the Grayscale Bitcoin Trust (GBTC). He criticized the GBTC for trading at a substantial discount to its Net Asset Value (NAV) and charging high fees. 

Additionally, Cameron highlighted that the SEC’s reluctance to approve its Bitcoin ETFs has led to the potential migration of spot Bitcoin trading to unlicensed and unregulated venues outside the United States. 

Furthermore, Cameron noted that the SEC’s decision pushed investors into the now-defunct FTX crypto exchange, emphasizing the risks that investors face as a result of FTX’s demise.

Winklevoss concludes by expressing hope that the SEC will reflect on its record and refocus its efforts on investor protection, fair markets, and capital formation. He also extends support to those advocating for the introduction of spot Bitcoin ETFs, indicating his desire for more accessible and regulated investment options for US investors.

Recent Wave of Spot Bitcoin Application

BlackRock, one of the world’s largest asset managers, has played a significant role in fueling the recent wave of spot Bitcoin applications. The company’s entry into the cryptocurrency market and its exploration of a spot in Bitcoin ETF have attracted attention and influenced other financial institutions to follow suit.

According to reports, there have been about 30 attempts for a spot-Bitcoin product as of last week. Last week, Coingape media reported that Fidelity Investments have officially filed for spot Bitcoin ETF after its original application was rejected by the SEC.