As cryptocurrency investors grow more educated, there is growing concern of regulation says Grayscale

Investors in digital asset manager Grayscale have become far more educated in the past decade, managing director Michael Sonnenshein tells The Block on a recent episode of The Scoop. This is changing the conversations surrounding deals, since investors have a baseline knowledge, but not the way to garner an investment.

"While most investors these days we encounter have that kind of preliminary 101 digital currency education, it is still interesting to see in the age that we're in that handshakes and face to face interactions and giving investors the opportunity to ask questions that they may not otherwise ask through a phone call or over email is something that we do in person," Sonnenshein says.

This means much of the Grayscale team is often out on the road, conquering investments one city at a time.


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Though investor knowledge has grown in the past decade, Sonnenshein said there continue to be questions surrounding the regulatory landscape and how Grayscale predicts it will change. 

Bitcoin also remains the popular play, which Sonnenshein attributes to the wide resources surrounding the cryptocurrency. Still, he said investors are often looking to diversify, even within the digital asset class.

"Following usually an investment in bitcoin we start seeing folks look at assets like Ethereum, Ethereum Classic or even looking at our diversified fund – digital large cap fund," he said.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.