“Investing in crypto is now something thematic”: CEO of Grayscale

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Bitcoin (BTC-USD) broke its previous high of just under $ 65,000 on Wednesday – just a day after ProShares’ Bitcoin Strategy ETF (BITO) launched on Tuesday, October 19. In light of these developments surrounding bitcoin, Grayscale CEO Michael Sonnenshein believes that investing in crypto shows no signs of stopping.

“Well, the asset class is here to stay, and investors have a general appreciation for it. Investing in crypto is now something thematic, right? Sonnenshein said. “Investors have historically gained exposure to energy, healthcare or technology. Now, crypto occupies a sleeve of this wallet. So among this, as a theme for investors, there has never been such a strong desire to diversify.

After bitcoin broke above $ 64,000 on Wednesday, the first time since April, the flagship cryptocurrency apparently found support well above the resistance level of $ 60,000. Bitcoin is now positioned to continue its rally in a rising ETF trading volume.

Sonnenshein joined Yahoo Finance Live to discuss the first bitcoin futures ETF as well as the outlook for cryptocurrencies. Grayscale, a digital asset management company with over $ 52 billion in assets under management, provides market insight and exposure to investments in the crypto space.

And with regulation still an imminent problem for the crypto markets, Sonnenshein said the SEC’s main concern with cryptocurrencies in recent years has been a question of price.

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“[The SEC has] has expressed concerns about the price manipulation of the underlying bitcoin market, whether or not there are significant regulated markets that they can monitor, right? These are the kinds of protections and tools that the SEC, as a regulator, is usually used to seeing, ”Sonnenshein said.

If bitcoin futures are successful in allaying the SEC’s aforementioned pricing concerns, according to Sonnenshein, this would “pave the way” for products based on cryptocurrency futures in the market. Such a development, he said, may also suggest that the SEC is increasingly “comfortable” with the underlying bitcoin spot market.

Grayscale crypto ETFs

Grayscale and the New York Stock Exchange on Tuesday filed a request to convert the world’s largest bitcoin fund, the Grayscale Bitcoin Trust (GBTC), into an ETF. The company also manages its Grayscale Ethereum Trust (ETHE), among other investment products.

According to Sonnenshein, Grayscale has been proactive in its efforts over the past few years working with regulators and industry partners to facilitate the launch of a grayscale Bitcoin ETF.

“We were waiting for our regulators to have the convenience they need to release these products to the market,” Sonnenshein said. “And now that we believe they have the convenience they need, now is the time to open the door not only to bitcoin futures products, but also physically supported products.”

He also described the trend of new emerging products for investors to broaden and diversify their exposure in the crypto space as one that shows “no signs of slowing down”.

“And as we reflect on what investors want, the success of GBTC has made it clear that investors are looking for that exposure in a physical or cash backed product,” Sonnenshein said. “And we plan to work, once again, proactively with the SEC to complete this ETF conversion and move to the New York Stock Exchange.”

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Thomas Hum is a writer at Yahoo Finance. Follow him on Twitter @thomashumTV

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