Grayscale Clients Going for ETH and BCH After Tasting Bitcoin: CEO Michael Sonnenshein

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Mon, 01/18/2021 - 09:41
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Yuri Molchan
Grayscale CEO has tweeted that the company's customers have been increasingly diversifying their portfolios by acquiring Bitcoin Cash and Ethereum in particular
Grayscale Clients Going for ETH and BCH After Tasting Bitcoin: CEO Michael Sonnenshein
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In a recent tweet, while discussing investors' preferences among crypto assets with Kraken's growth lead, Dan Held, the CEO of Grayscale Investments pointed out that the company's customers have been actively diversifying their crypto portfolios recently.

"Institutions are going for BCH and ETH after Bitcoin"

During the discussion, Mr. Held referred to an article that states that, according to the NYDIG CEO, Bitcoin is the only asset preferred by institutional investors.

The recently appointed chief executive of Grayscale Investments, Michael Sonnenshein, pointed out that the situation with institutional customers in his company is a little different.

Sonnenshein tweeted that Grayscale's clients have been actively diversifying their crypto portfolios and mentioned Bitcoin Cash (BCH) and Ethereum (ETH) in particular as coins that financial institutions are going for apart from Bitcoin.

Can't say we're having entirely the same experience at Grayscale. Certainly most investors' first taste of #crypto is #bitcoin, but have increasingly been seeing a push for diversification within the asset class from our institutions.

Kraken's growth lead believes that, most likely, investors are choosing these coins, aside from Bitcoin, for arbitrage trading reasons.

BTC
Image via Twitter

Related
JPMorgan Says $40,000 Is Crucial for Sustained Bitcoin Momentum

Reasons for Bitcoin rally suggested by Nic Carter

A partner at Castle Island Ventures, Nic Carter, has published an article sharing the reasons likely to power the current Bitcoin rally after its major decline between early 2018 and late 2020.

Some of them have already been voiced before by other top cryptocurrency figures.

Among these reasons are: the fact that professional investors now have no risk in acquiring Bitcoin, financial institutions have rushed in to lay their hands on Bitcointhe aforementioned Grayscale is the biggest hedge fund to allow institutions do thatthe OCC allows banks to store private keys for crypto for their customers, the fact that a lot of people are worried about possible USD devaluation due to massive QE measures and the appearance of a new "Bitcoin evangelist," Michael Saylor.

Last year, the publicly traded MicroStrategy giant spearheaded by Saylor invested a whopping $475 million in Bitcoin to protect its cash reserves.

After that, the company raised $650 million from investors for investing into Bitcoin and bought more BTC.

The company's share price rose after the first Bitcoin acquisition was made from around $117 per share to $578 at press time.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.