Digital assets firm Grayscale Investments has appointed Michael Sonnenshein, currently the company's managing director, as CEO. The company's bitcoin fund, Grayscale Bitcoin Trust, now holds more than 3% of the total btc offering.
The investment company also plans to double the number of employees and introduce 6 more products in 2021, according to the new CEO.
"We started to see participation not only from the hedge fund segment, which we saw a long time ago, but now it is recently from other institutions, pensions and equity funds," Michael Sonnenshein, who was named successor to founder Barry Silbert on Thursday fair, he said in an interview. "The size of the allocations they are making is also growing rapidly."
Grayscale has 10 funds and currently manages $ 25 billion in assets, up from $ 2 billion a year ago, Sonnenshein said. The Bitcoin fund saw most inflows in the midst of a spike that pushed Bitcoin to its all-time high of $ 40,000.
Grayscale Bitcoin Trust (GBTC) assets and its share price. Source: Bloomberg.
Grayscale funds operate as trusts that hold increasing reserves of currencies, such as Bitcoin, that cannot be redeemed by investors. Holders can sell their shares in most trusts in the secondary market. The success of the Grayscale Bitcoin Trust may be impacting the supply of Bitcoin, Sonnenshein said.
"So there is definitely an argument to be made about Greyscale and really any other vehicle that can remove Bitcoin from circulation and put it in a financial product, inherently increasing the scarcity of an already scarce asset," said Sonnenshein. "This is a verifiable scarce asset and, therefore, when there are mechanisms that are removing it from circulation, it inherently makes it an even scarcer asset."
Sonnenshein joined the Grayscale, based in New York in 2014 and, more recently, was its managing director. Prior to joining the company, he was an associate at JPMorgan Chase & Co. and an analyst at Barclays Plc. Barry Silbert will continue as chief executive of Grayscale's parent company, Digital Currency Group.
See also: User goes viral on Reddit after finding lost wallet with 127 bitcoins
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