According to Grayscale CEO Michael Sonnenshein, Bitcoin is no longer “a passing fad”. While some skeptical voices once viewed Bitcoin as a passing trend, it is now clear that this digital currency has acquired a solid place in the global financial landscape.
The Evolution of Bitcoin: From Marginal Curiosity to Prime Asset
Michael Sonnenshein underlines the evolution of the perception of Bitcoin, going from a fringe curiosity to a leading digital assetattracting the attention of institutional investors and market participants.
The entry of large investment companies such as BlackRock and Fidelity into the race to launch a Bitcoin ETF in real time illustrates how bitcoin is no longer “a passing fad”, according to Michael Sonnenshein, chief executive of Grayscale.
Towards the end of December 2022, Grayscale and its parent company, the Digital Currency Group, went through a difficult time, faced with the bankruptcy of Genesis and multiple financial problems. The GBTC price experienced a historic discount to the real Bitcoin priceleaving doubts about the future of the company.
Despite this, some pragmatic investors, including Cathie Wood, maintained their confidence. Thanks to the direction of Michael Sonnenshein, Grayscale managed to navigate through this winter storm.
Seven months later, a considerable lapse of time in the field of crypto, the situation has changed dramatically. The GBTC discount, which had peaked at 47%, narrowed to around 25% following ETF demand announcements from traditional financial players.
Among those rushing to participate, the arrival of BlackRock has particularly attracted attention and animated discussions. Indeed, the CEO of BlackRock, who filed a surprise application for a Bitcoin ETF in mid-June, told Fox Business that Bitcoin was digital gold equivalent.
In 2017, Larry Fink, CEO of BlackRock, described Bitcoin as “a money laundering index”. However, his point of view has changed and he is now convinced that Bitcoin has the potential to “revolutionize finance“according to his recent statement.
Grayscale sees revenue spike with GBTC and ETHE in June
“Recent news about new players entering the Bitcoin market underscores the resilience of this asset class more generally, and many investors view this as a once-in-a-generation investment opportunity,” he said. added Sonnenshein.
Grayscale, which aims to transform its flagship product GBTC into a real-time bitcoin fundrecorded a peak in estimated revenue from its main products, GBTC and ETHE, in Junethus reaching a monthly high for the current year.
Source : The Block