Institutional interest in bitcoin has only intensified since the start of the new year, said the recently-appointed CEO of the leading digital asset manager, Grayscale Investments – Michael Sonnenshein. He also added that institutions are satisfied with the current cryptocurrency regulations.
Founded in 2013, Grayscale is a company enabling institutional investors to receive exposure to bitcoin and other digital assets without worrying about storing and managing their holdings.
The firm has enjoyed the past year with massive growth in which the Assets Under Management exploded by ten-fold from $2 billion to $20 billion.
He believes that there’re two main strategies that corporations and institutions undertake to start purchasing BTC. They can either make one massive buy such as Tesla, or they can take a more of a dollar-cost average approach and purchase on several batches, such as MicroStrategy.
Ultimately though, neither one should matter if these corporations believe that the asset would surge in value.
He also predicted that this trend will continue as these “visionaries” have moved the narrative from “why” they should invest in bitcoin to “why not.”
In the past, numerous BTC doubters have expressed their concerns with the absence of clear regulations about the cryptocurrency. Michael Sonnenshein admitted that their clients and potential customers are indeed focused on legislation, but many of them have not expressed any regulatory concerns.
These circumstances could only propel more institutional inflows into the Grayscale Bitcoin Trust and the other company products. The substantial rise in 2021 has resulted in over $16 billion added in less than a month and a half.