Pension funds are actively exploring Bitcoin diversification to embrace cryptocurrencies, says Grayscale CEO.
Michael Sonnenshein, CEO of digital asset management firm Grayscale Investments, said more pension funds are looking into diversifying their portfolios to embrace cryptocurrencies, according to Finbold. Speaking in an interview with CNBC on June 10, he noted that interest in assets such as Bitcoin as a portfolio diversifier is growing despite the ongoing market pullback.
According to Sonnenshein, volatility is not the main issue affecting investors as they look at the sector in the long term. He noted that investors are paying more and more attention to the prospects for regulation.
“We are spending time with politicians, and some of the largest pensions and endowments focused on diversifying their portfolios and actively exploring crypto allocations. It's a different kind of consensus,” he said.
Grayscale continues to explore different crypto investment products, with the Bitcoin spot ETF being one of the possible offerings set to join the market. The company is currently awaiting feedback from the Securities Exchange Commission (SEC) on converting its Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin Exchange-Traded Fund (ETF).
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.