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.
Interest In Bitcoin Only Getting Stronger: Michael Sonnenshein
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.
The company’s new CEO, Michael Sonnenshein, said during a CNBC Squawk Box appearance that the institutional interest and allocations have only increased since the start of the year.
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.
“They’ve seen other corporations like MicroStrategy legging into this trade over time, and they ultimately believe in the growth of this. So, buying Bitcoin whether it’s here, ten percent higher, or ten percent lower, ultimately, is not going to matter if they think Bitcoin is going to have the type of growth they think it is going to have over time.”
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.”
Current Regulation Is No Issue
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.
The firm’s latest AUM update showcases that the total holdings have increased to $36.5 billion, with GBTC accounting for more than $30 billion (or 82%).