Grayscale CEO Michael Sonnenshein said the financial industry has “never seen such insatiable demand for an ETF wrapper” as it has seen with Bitcoin ETFs.
Sonnenshein made the statement during a CNBC interview on March 1, where he shared his insights about the performance of spot Bitcoin ETFs and the market’s response to their recent launch.
Investor demand
Sonnenshein said:
“[There’s been] a lot of pent up demand based on the spot Bitcoin ETFs coming to market. … And so we’re seeing tremendous flows and investor demand, and that’s really also outpacing the supply of bitcoin coming into the market every day which is really being added to the price.”
He added that the demand for these ETFs is diverse and includes retail and institutional investors.
Despite that supposed growth, CNBC noted that the Grayscale Bitcoin Trust (GBTC) has seen significant outflows. Specifically, GBTC experienced continuous outflows over 30 days.
Sonnenshein explained that GBTC is older than most other funds and came to market with $30 billion of assets under management, while the Newborn Nine entered the market without any previous holders.
He added that the company had anticipated the outflows since investors had held the shares for a long time.
New wave of adoption
Sonnenshein said that the industry is experiencing a “new wave of adoption” with the launch of these ETFs, and it’s only a matter of time before money starts flowing into Bitcoin, driving it to new highs.
He noted that there is $40 trillion of advised wealth that has been sidelined from Bitcoin and now has a path to gain some exposure to the flagship crypto.
Meanwhile, traditional financial institutions are starting to relent under client pressure and allowing access to these ETFs, including Bank of America’s Merrill Lynch and Wells Fargo.
Additionally, the halving is encroaching and will reduce Bitcoin’s supply by 50% in less than two months. Sonnenshein believes the upcoming halving will be a significant catalyst in bringing more investors to the industry and driving adoption.
Sonnsenshein also recently said during a separate interview that the approval of spot Ethereum ETFs is a “matter of when, not if.”
Industry experts predict there is a 50% chance the SEC will greenlight the ETH ETFs by the first application’s deadline this summer.
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- Source: https://cryptoslate.com/grayscale-ceo-says-there-is-insatiable-demand-for-spot-bitcoin-etfs/
