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Grayscale’s newly appointed CEO Michael Sonnenshein believes that as institutional capital and the country’s adoption of digital assets will drive the next bull market, 2021 will be another critical year for digital asset investment.
In the keynote speech at this year’s Virtual CFC St. Moritz Conference, Sonnenshein pointed out three key investment themes that will support the surge of Bitcoin (BTC) in 2020. They are legendary investors and well-known companies that invest in BTC, as well as the constantly strengthening regulatory framework for digital assets.
Sonnenshein believes that this trend will continue in 2021 as more investors invest in Bitcoin and other digital assets. He also pointed to several companies that may affect the development of the digital currency market in the near future.
Sonnenshein believes that the six themes that investors should pay attention to in 2021 are:
Reduce professional risks associated with digital asset investment
The interest of financial advisors is growing
North America and the growth of clean energy crypto mining
Increase stablecoin integration
National adoption of digital assets
New regulatory development
Regarding national adoption, Sonnenshein speculated that this may include the pilot of the central bank digital currency (CBDC) and the possibility of Bitcoin as a strategic reserve for some governments.
Regarding miners, he said that Gray’s sister company Foundry has become the largest cryptocurrency miner in North America.
The Digital Currency Group, the company behind Grayscale and Foundry, revealed last year that it would invest $100 million in mining bitcoin and other digital assets in North America.
Grayscale investment products have become the vane of adopting digital assets. The company’s assets under management have soared from USD 2 billion at the beginning of 2020 to USD 20 billion at the end of the year. This growth momentum has not diminished. As of January 19, the total asset management market has reached 28.1 billion US dollars.
Update on January 19, 2021: Net assets under management of our investment products, holdings per share and market price per share.
Total assets under management: USD 28.1 billion $ BTC $ BCH $ ETH $ ETC $ ZEN $ LTC $ XLM $ ZEC
— Grayscale (@Grayscale) January 19, 2021
Grayscale holds about 3% of Bitcoin’s circulating supply, which seems to be attractive to Bitcoin’s price. JPMorgan Chase’s strategists headed by Nikolas Panigirtzoglou believe that this investment company (Grayscale) is the key to Bitcoin’s return to more than $40,000 in the short term. In order to achieve this goal, Grayscale needs to maintain a daily purchase rate of 100 million US dollars.