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In a statement that reaffirms Bitcoin‘s (BTC) robust standing in the market, Grayscale CEO Michael Sonnenshein recently declared that the preeminent cryptocurrency is no longer a passing craze. This assertion stems from the fact that the world’s most significant asset management firms have entered a heated race to offer a spot Bitcoin exchange-traded fund (ETF).
“Bitcoin No Longer a Passing Fancy”
In a conversation with The Block, Sonnenshein argued that the entry of heavyweight investment firms such as BlackRock and Fidelity into the race to provide a spot Bitcoin ETF underscores that Bitcoin is far from being a fleeting fad. He indicated that market participants have reacted positively to the entrance of these traditional financial institutions into the Bitcoin market, bestowing further legitimacy onto an asset that was once considered a transient interest.
As we know, BlackRock, the world’s largest asset management company, knocked on the door of the U.S. Securities and Exchange Commission (SEC) in mid-June to offer a spot Bitcoin ETF, thus triggering a wave in the sector. BlackRock CEO Larry Fink, who grabbed headlines with his surprise ETF application, made notable comments about Bitcoin during a July 5th interview with Fox Business, dubbing the top cryptocurrency “digital gold.”
Ironically, this was the central thesis of a 2020 marketing campaign led by Grayscale. Yet, back in 2017, Fink had described BTC as an index of money laundering.
Commenting on the increased competition in the crypto asset management sphere, Sonnenshein added, “The recent news about newcomers entering the Bitcoin market underscores the staying power of this asset class in broader terms, and many investors see it as a once-in-a-generation major investment opportunity.”
Spot Bitcoin ETF Wave Benefits Grayscale
While the company is struggling to convert its flagship product, the Grayscale Bitcoin Trust (GBTC), into a spot Bitcoin ETF, the estimated revenue from its main products GBTC and ETHE reached its highest level for the year in June.
The long queue of major asset management companies at the SEC’s door to offer a spot Bitcoin ETF boosted the GBTC index for the first time since May 31, 2022, pushing it over the 20-level mark.
