Grayscale CEO Michael Sonnenshein shared some interesting thoughts about crypto investors and Bitcoin on Bloomberg.
On the nature of investing
Specifically, Sonnenshein touched on the topic of investing in cryptocurrency assets and their volatility. He stated that cryptocurrency investors know that volatility will be part of the process.
Most Grayscale investors, however, do not look at short-term price movements or short-term volatility, he said.
Sonnenshein argues that cryptocurrency investments are mostly taken for the medium to long term. That is why he does not think that people are terribly struck by dramatic movements on the market.
The diversification game
The Grayscale CEO believes that, for many investors, the crypto market is a "diversification game" because of a differential income stream.
Nevertheless, Sonnenshein thinks that in a time of market decline, with fear present, there seems to be nothing to prevent liquidity from leaving the market and reducing the debt load.
The Grayscale CEO noted that investors, for the most part, have a lot of Bitcoin. He expressed confidence that there is now a "trend toward diversity in crypto assets" among them.
Thus, according to Sonnenshein, investors are looking at other assets to build their portfolios. He is confident that many investors are really starting to get excited about some of these new digital asset protocol options that are starting to emerge.
Michael Sonnenshein also touched on DeFi technology and said that it is a whole new hot area of cryptocurrency. He noted that investors are also showing a lot of interest in this area, and it is an attractive opportunity for them.
The launch of the fund, according to Sonnenshein, will give them a focused look at a wide range of digital asset protocols.
The Grayscale CEO also touched on the prospects for Bitcoin. He said its possibilities "remain very bright," basing his opinion on investment in the market and the size of the allocation.