Bitcoin is here to stay whether big banking executives like Jamie Dimon like it or not, according to Grayscale CEO Michael Sonnhenshein.
The executive is the face of the company spearheading the world’s largest Bitcoin (BTC) and Ethereum (ETH) investment funds. Grayscale is currently negotiating with the Securities and Exchange Commission (SEC) to approve each fund’s conversion into publicly traded spot ETF products.
Despite opposition, the company won a lawsuit against the government regulator in August in a major step towards doing just that. Yet earlier this week, JPMorgan’s CEO said that if he were in charge he’d close Bitcoin down entirely.
Sonnhenshein responded with understanding, yet dismissal. In a Wednesday interview with Yahoo Finance, he said:
“I think every executive, particularly in the financial services space, is going to have their own opinions on new technologies and whether that’s crypto or Bitcoin specifically. But if you take a big step back, there is no question that this asset class is here to stay, that investor interest in this asset class is only growing.”
After a major rally above $44,000 earlier this week. Bitcoin is up over 160% year to date. Ethereum, meanwhile, is up 96% at over $2,300.
Sonnhenshein highlighted how assets like Bitcoin can “mean different things to different people” – especially in an investment context. While some might buy it as a hedge against inflation and the traditional financial system (much like gold), he believes others may begin flocking to it as a technology investment in a potential low-interest rate environment next year.
The Importance of A Bitcoin ETF
If approved as an ETF, Sonnhenshein’s Grayscale Bitcoin Trust (GBTC) is expected to provide a pathway for institutional money to directly invest in BTC.
Many firms are barred from buying coins directly due to internal charters mandating that they only buy assets with the wrapper of a traditional security. Until now, such firms looking for Bitcoin exposure have had to settle for close seconds, like shares in crypto exchange Coinbase (COIN) or the prolific Bitcoin investor MicroStrategy (MSTR).
As more capital floods into crypto, Sonnhenshein said it’s imperative that legacy financial institutions “evolve their business models” to account for the blockchain. He stated:
“Regardless of the opinions that some of these executives may have, these banks and these large institutions have to position themselves for the modern-day investor. And that includes adopting new technologies like crypto.
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