Bitcoin (BTC) has “solidified” its role in the global economy as a store of value and “digital gold,” said the head of the world’s largest BTC fund.
Speaking in an interview with financial news magazine The Compound in March. 2, Michael Sonnenschein, managing director of Grayscale Investments, said that Bitcoin was in a new era of investment.
Grayscale: institutions believe BTC is a ‘safety drain’
Unlike even two years ago, in 2020, institutional investors find it necessary to have cryptocurrency in their wallets.
“Bitcoin itself has solidified its role as a store of value or digital gold,” he said.
“So, I’m talking to an institution, they now consider Bitcoin to be part of the same security leak that they might look at bonds or gold or other things that served that title for them, and it was not a widespread phenomenon. ” story probably up to about the last 12 or 18 months. “
In 2019, Grayscale’s Bitcoin Investment Trust (GBTC) was the second most liquid OTC or OTC market. As Cointelegraph reported, the company’s fortune has gotten better and better, with investors increasingly focusing their attention on regulated Bitcoin products.
The company’s managed Bitcoin assets currently account for about 1.5% of all existing Bitcoin, or $ 3 billion.
Grayscale became a reporting company with the U.S. regulator, the Securities and Exchange Commission (SEC), in January, and Sonnenschein believes the tide is gradually turning in favor of crypto companies engaged in compliant activities.
The SEC approving a Bitcoin exchange-traded fund, or ETF, for example, is “a matter of” when “, not” if “,” he said.
A window for altcoins?
Sonnenschein continued:
“There is growing evidence that this asset class will not disappear – investors want to access it, and if legacy institutions want to remain competitive, they will have to open the door to this asset class for their clients.” “
With Grayscale offering a total of ten crypto funds, it nevertheless avoided favoring Bitcoin over altcoins. The controversial Bitcoin Cash (BCH), he argued, was simply trying to solve other problems with Bitcoin itself.
“Over time, we do not know who will be the winner,” he said.
