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A digital dollar will not doom bitcoin, according to two cryptocurrency fund managers.
As central banks around the world consider digitizing their fiat currencies, the trend could actually push more investors into crypto, Michael Sonnenshein of Grayscale and Greg King of Osprey Funds told CNBC this week.
“It won’t displace or, if anything, take market share or compete with decentralized currencies like bitcoin,” Sonnenshein, CEO of Grayscale, said in an interview Monday on CNBC’s “ETF Edge”. .
“I think all the trends are towards the digitalization of money and something that investors and just the average person who might not be in the investment market can look to as well,” said Sonnenshein.
Grayscale manages the world’s largest bitcoin-based fund, the Grayscale Bitcoin Trust (GBTC), with more than $ 24 billion in assets under management.
While bitcoin has yet to establish itself widely as a payment mechanism, its role as a store of value can only grow stronger with the introduction of government-backed digital currencies, said King, Founder and CEO of ‘Osprey, another bitcoin fund provider.
“Imagine the world’s fiat currencies being digitized. I actually think it pushes more people into something like bitcoin because, frankly, it would give governments even more control than they already have over theirs. money supply, and a lot of people are getting into bitcoin for concerns about this type of control, ”he said in the same ETF Edge interview.
In addition to the Osprey Bitcoin Trust (OBTC), King’s company also operates the Osprey Algorand Trust, which is based on technology that supports many of the central bank’s digital currency projects.
With global adoption resuming, bitcoin looks to have a good year ahead of it, the two CEOs said.
“I am more encouraged than ever by who is participating in the ecosystem and to what extent they are participating in the asset class,” said Sonnenshein. “What this ultimately means for price remains to be seen, but I believe the institutionalization of this asset class has arrived and is here to stay.”
King expected what he saw as a bitcoin “bull market” to persist.
“We think it’s going to be higher,” King said. “I would say it resolutely crosses the 40,000 mark, then it will keep going. If it goes down, we might have problems. My opinion is that it is bullish. But we take a medium and medium view. long term anyway, so this represents a good buying opportunity in my book. “
Bitcoin traded nearly 2% more on Friday.
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