Grayscale CEO Welcomes Big Asset Managers to Crypto Space
Grayscale Investments CEO, Michael Sonnenshein, expressed his approval of BlackRock, Fidelity, and other major asset managers venturing into the cryptocurrency space. Sonnenshein sees their involvement as a validation of the asset class.
Key Points:
– BlackRock’s filing to launch a spot bitcoin ETF in June was seen as a positive move.
– Other asset management giants, such as Fidelity, Invesco, and WisdomTree, have also followed suit.
– Grayscale has been a leader in crypto asset management, with $19.1 billion in assets under management.
– The performance of Grayscale’s signature trust, GBTC, has lagged in recent years, trading at a 27.5% discount to Net Asset Value.
– Grayscale filed to convert its trust into an ETF but was rejected by the SEC. They have since sued the regulator.
Sonnenshein believes that if Grayscale succeeds in its ETF conversion bid, billions of dollars in investor capital could be unlocked. This move to an ETF structure would provide investors with the additional protection they desire.
Hot Take:
The entry of major asset managers like BlackRock and Fidelity into the crypto space is a significant development that adds credibility to cryptocurrencies. Grayscale’s CEO, Michael Sonnenshein, sees this as a positive step and believes that converting their trust into an ETF will provide further protection for investors. If successful, this conversion could unlock billions of investor capital.
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