HPS Insights

Crypto Convos With Grayscale's Craig Salm

May 17, 2022

On the latest episode of Crypto Convos, Craig Salm, Chief Legal Officer of Grayscale Investments, joins HPS partner Bryan DeAngelis to discuss the past, present, and future of cryptocurrency investing and surrounding regulation. 

In the episode, Craig explains how what started as an “intellectual investment” in crypto during law school led him to his work today, “bring[ing] access and exposure to the digital currency asset class in the form of a security, which is just a very familiar, transparent, traditional type of way to get investment exposure.” He details the history of Bitcoin ETFs, delving into the legal nuances of the Securities Act of 1933 (’33 Act), the Securities Exchange Act of 1934 (’34), and the Investment Company Act of 1940 (’40 Act), arguing that “in the context of Bitcoin ETF approvals, those are distinctions without a difference.” Craig goes on to emphasize how a spot Bitcoin ETF provides increased investor protections, improves American competitiveness and leadership in the cryptocurrency space, and is the natural next step given SEC approval of a Bitcoin futures ETF. 

Bryan and Craig also walked through Grayscale’s public push for SEC approval of its own proposed spot Bitcoin ETF, with Craig calling the SEC open comment letter period “a great demonstration of the democratic process at work.” He concluded by outlining possible courses of action following an SEC decision. Give it a listen and check out the show notes below!

Show Notes

Grayscale’s SEC Comment Letter Submission Page

CNBC: Grayscale Tells SEC That Turning Biggest Bitcoin Fund Into ETF Will Unlock $8 Billion For Investors

Updated SEC Comment Letter From Davis Polk, Grayscale’s Law Firm

‘A New Argument for a Bitcoin ETF’ By Craig Salm

‘Another New Argument for a Bitcoin ETF’ By Craig Salm

@CraigSalm on Twitter

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