The entrance of large investment firms like BlackRock and Fidelity into the race to launch a spot bitcoin ETF fund illustrates the extent to which bitcoin is no longer "a passing fad," according to Grayscale chief executive Michael Sonnenshein.
The leader of the largest crypto asset manager told The Block that "market participants are reacting favorably to the entrance of legacy financial institutions into Bitcoin — a trend that lends further validity to an asset that was once believed to be a passing fad," he said.
Indeed, on Wednesday the CEO of BlackRock — which submitted a surprise filing for a spot bitcoin ETF in mid-June — told Fox Business that bitcoin was equivalent to digital gold. Ironically, that echoes the underpinning thesis of a 2020 marketing campaign run by Grayscale.
In 2017, BlackRock CEO Larry Fink described bitcoin as "an index of money laundering."
Bitcoin staying power
"Recent news of new entrants into Bitcoin underscores the staying power of this asset class, more broadly, and many investors view this as a once in a generation investment opportunity," Sonnenshein added, referring to the surge in competition in the crypto asset management space.
Grayscale, which is vying to upgrade its flagship GBTC into a spot bitcoin fund, has seen its estimated revenue from its main products GBTC and ETHE hit a monthly high for the year this June.
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