Grayscale’s Q3 Report Shows Impressive Growth In New institutional Interest of Crypto Assets


Michael Sonnenshein gave an interview for CNBC on November 20, saying Grayscale’s recent Form 10 filing with US regulators would be great for the crypto industry if approved.

At the beginning of this week, the asset manager Grayscale filed a Form 10 registration statement for the Grayscale Bitcoin Trust (GBTC), which is its Bitcoin (BTC) publicly traded fund. The registration was taken to the US Securities and Exchange Commission (SEC).

The Trust Would Make Grayscale the First Crypto Reporting Company

If it gets through, the trust would make Grayscale the first cryptocurrency reporting company. Sonnenshein noted in his interview that the institutional interest in crypto products is increasing, adding about the third quarter of 2019:

“84% of inflows were from non-crypto hedge funds that want digital asset exposure.”

GBTC is trading since May 2015. Sonnenshein said the trading volume over the last 3 months has tripled, regardless of how Bitcoin (BTC) has performed on all spot markets. When asked about how important the SEC approval is for Grayscale’s Form 10 filing, he stated that exposure is gained by diligent companies who are regulated, adding that compliance benefits are important, but not more than having products that “look and feel” like the ones used by institutions.

Bitcoin Price Will be Determined by Halving and not Institutions

Sonnenshein further suggested that in case of Form 10 it is regarded as effective, the institutions needing SEC reporting companies would have more access to invest, while investors would gain quicker options for liquidity as they’d be able to reveal their holdings after 6, and not 12 months.

When asked about what can impact the Bitcoin price, he said institutional investors won’t have anything to do with it, and that the halving or a decrease in supply will matter the most. Grayscale’s filing with SEC comes after the trust had a record year in which it has seen $254 million in inflows for its products, only in 2019’s third quarter.

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