Michael Sonnenshein, the newly appointed Grayscale Investments CEO believes 2021 will be another pivotal year for investing in digital assets as institutional capital and the nation-state takeover drive the next level of the bull market.
In a keynote address at this year’s virtual conference of CFC St. Moritz, Sonnenshein identified three important investment topics that underpinned the spectacular Bitcoin (BTC) outbreak in 2020: macroeconomic uncertainty and quantitative easing; legendary investors and branded companies investing in BTC; and the continuous strengthening of the legal framework for digital assets.
Sonnenshein expects these trends to continue into 2021 as more investors diversify into Bitcoin and other digital assets. He also identified several others that could shape the digital currency market in the near future.
According to Sonnenshein, investors should look for six topics in 2021:
- Decreased career risk associated with investing in digital assets
- Growing interest among financial advisors
- The Growth of North American Crypto Mining and Clean Energy
- Stronger integration of stable coins
- Takeover of digital assets by nation states
- New regulatory developments
Regarding the adoption of the nation-state, Sonnenshein speculated that this will likely include testing the central bank’s (CBDC) digital currencies, as well as the ability to add bitcoin as a strategic reserve for some governments.
On the subject of miners, he said that Foundry, a sister company of Grayscale, has already become the largest cryptocurrency miner in North America.
Digital currency group, The company behind Grayscale and Foundry announced last year that it would be investing $ 100 million in mining Bitcoin and other digital assets in North America.
Grayscale’s investment products have become something of a benchmark for introducing digital assets. The company’s assets under management (AUM) rose from just $ 2 billion in early 2020 to over $ 20 billion by year-end. This growth has not yet slowed with total AUMs reached $ 28.1 billion on Jan. 19.
19/01/21 UPDATE: Net Assets Under Management, Holdings per Share and Market Price per Share for our investment products.
– Grayscale (@Grayscale) January 19, 2021
With roughly 3% of the circulating Bitcoin supply, grayscale seems to have a gravitational pull on the price of BTC. JPMorgan Chase strategists, led by Nikolas Panigirtzoglou, believe the investment manager is key for Bitcoin to outperform over $ 40,000 in the short term. To get there, Grayscale would have to maintain a constant purchase rate of $ 100 million per day.