As the largest crypto asset manager in the world, Grayscale has over $ 2.7 billion in assets invested in 10 products. One of these is the Grayscale Bitcoin Trust (GBTC).
Michael Sonnenshein, Grayscale General Manager for Investments, explained in an interview with ETF.com that there are major misunderstandings that prevent traditional investors from entering the crypto market.
Bitcoin offers more benefits than gold
He emphasized that the world is evolving into a digital system, and cryptocurrencies, with all their volatility, represent the future. Bitcoin is in many ways a value deposit just like gold, but it is better because it is available in limited quantities, is more portable and is divisible.
Sonnenshein recognizes that investments in cryptocurrencies are risky and volatile, as this asset class is at its beginning.
For institutional investors, the purchase and holding of digital assets are not yet within their operational framework. But Bitcoin-based derivatives and investment products like Grayscale Bitcoin Trust are similar to traditional ones and are more attractive to this type of investor.
Risks associated with cryptocurrency theft: BTC was not compromised, the supplier was
Another widely discussed issue in the media is theft of cryptocurrencies. Whether it’s major exchange hacking or wallet compromise. Sonnenshein pointed out that the problem was never with Bitcoin, but with the cryptocurrency service provider. The Bitcoin network has never been compromised.
For this reason, it is important for investors interested in exposure to these types of assets to carefully investigate the custody service providers and platforms used. Unfortunately, most investment advisers are not yet educated on cryptocurrencies.
The advisors analyze the investment class and the options available in a brokerage account and see shares, bonds, ETFs, mutual funds. Currently, cryptocurrencies do not fall into the respective infrastructure.
However, a lot of known players get involved in the crypto market and the situation can change quickly.
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