For Grayscale, the price of bitcoin and cryptocurrencies are set to rise further.
The prediction comes from David Grider, who recently became Head of Research at Grayscale. David Grider has a background in Fundstrat and before that, he founded Aenigma Capital.
Now he has become an active part of Grayscale Investment, a company that manages perhaps the largest amount of crypto assets for institutional investors.
As of the last update on August 11, its assets under management amount to $41.9 billion, of which almost $30 billion are in the Grayscale Bitcoin Fund.
In an interesting interview with Business Insider, David Grider clarified the reasons why bitcoin and cryptocurrencies will rise further:
“My view has been that this was a mid-cycle pullback in a broader bull market cycle run. I think that fits within the narrative of the macroeconomy being in the early innings of a recovery post the Covid crisis”.
Furthermore, the fact that some traditional institutions such as JP Morgan and Wells Fargo are starting to offer cryptocurrency-related products to their clients can only be good for the industry.
But Grider was also optimistic about the DeFi sector. Grayscale recently launched a dedicated fund, the Grayscale DeFi Fund, which is described by the new Head of Research as follows:
“It’s almost like this FinTech 2.0 access exposure vehicle for this asset class,” he said of the DeFi fund. “I’m very bullish on that area and I will continue to be”.
Grayscale aims at Bitcoin ETFs
Grayscale has certainly been among the most proactive firms in tapping into institutional investor demand.
Now its challenge is to launch Bitcoin ETFs as well. To do so, Grayscale has turned to David Lavalle, global head of ETFs.
Just yesterday in an interview with CNBC, LaValle seemed very optimistic about the imminent approval of Bitcoin ETFs:
“The story is no longer if there’s going to be a bitcoin ETF but when there’s going to be a bitcoin ETF”.
When the SEC starts approving bitcoin ETFs, Grayscale could convert its Bitcoin Trust into an ETF. At that point, further entry from institutional investors is to be expected, which can only be good for the price of BTC and ultimately the entire crypto sector.
