The CEO of crypto investment firm Grayscale says suppressed demand for Bitcoin (BTC) is driving up its price after BTC exchange-traded funds (ETFs) were approved in January.
In a new interview Speaking to CNBC Television, Grayscale CEO Michael Sonnenshein says demand held in check before the approval of the BTC ETFs is now fueling Bitcoin rallies.
“There is a lot of pent-up demand based on where Bitcoin ETFs come to market.
GBTC (Grayscale Bitcoin Trust) was listed on the exchange in January this year and that really opened the doors for a lot of other spot ETFs to come into the market and so we’re seeing huge flows and huge demand from investors and that’s actually outpacing the supply of Bitcoin that comes in. at the market every day, which is added to the price.”
According to Sonnenshein, Bitcoin’s rise is still in its early stages, as he believes the spot market BTC ETFs have opened the doors for a new wave of investors to accumulate the top cryptocurrencies by market cap.
“We are just at the tipping point. I think many of my colleagues in the industry have been calling for a new wave of adoption as Bitcoin ETFs become available through advised asset channels.
There are over $40 trillion in advisory assets in the US and they have largely not participated in Bitcoin or the crypto asset class more broadly. We think we’re at the beginning of the innings with this.”
Bitcoin is trading at $61,885 at the time of writing, up about 26% from the price when the ETFs were approved.
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