Grayscale CEO Michael Sonnenshein is optimistic that the approval of a spot Bitcoin ETF could trigger a significant inflow of funds into the cryptocurrency market.
Speaking during a CNBC interview on Monday, Sonnenshein noted that the approval of spot Bitcoin ETFs in the United States could “unlock” around “$30 trillion worth of advised wealth.” He emphasized that this untapped source could flow into the crypto market, marking a significant shift in the landscape for cryptos such as Ethereum, XRP, Solana, Cardano, and Shiba Inu.
“We’re really taking about the advised market here in the U.S. Which is today, about $30 trillion worth of advised wealth that we hope the approval of spot Bitcoin ETFs, the up-listing of GBTC, will allow for that opportunity and for those investors to partake in it as well.” He said.
Sonnenshein also conveyed confidence in the introduction of spot Bitcoin ETFs, legitimizing the market and providing a more accessible investment avenue for a broader range of investors, especially the so-called “advised wealth” who had shown reluctance to engage with Bitcoin.
Notably, Sonnenshein’s conviction stemmed from the optimism generated by Grayscale’s legal victory against U.S. regulators. To him, this triumph potentially clears the path for the Grayscale Bitcoin Trust (GBTC) to be uplisted as a spot Bitcoin ETF, unlocking fresh possibilities for investors.
The CEO also highlighted the recent upward trend in Bitcoin prices, attributing it to a combination of macroeconomic and microeconomic factors. On the macro level, he pointed to inflationary pressures and increasing interest rates as key drivers pushing investors towards Bitcoin as a store of value and a hedge in their investment portfolios.
Notably, Grayscale Investments is among many spot Bitcoin ETF applicants who see institutional adoption and the recognition of Bitcoin as a legitimate asset class as key benefits following spot ETF approvals.
That said, Sonnenshein’s comments come even as speculation around the approval of a Bitcoin spot ETF continues to gain momentum. On Tuesday, pro-Ripple lawyer John Deaton expressed confidence in a Bitcoin spot ETF gaining approval before 10th January.
Adding to the anticipation, Mike Novogratz, CEO of crypto investment firm Galaxy Digital, articulated similar thoughts in a CNBC interview stating “we’re going to get this ETF before January 10th. That’s kind of the drop-dead date that Gansler has before he gets in trouble with Grayscale and the lawsuit.”