The chief executive of crypto investment firm Grayscale says that repressed demand for Bitcoin (BTC) is driving up its price after BTC exchange-traded funds (ETFs) were approved in January.
In a new interview with CNBC Television, Grayscale CEO Michael Sonnenshein says demand that had been kept in check before the approval of the BTC ETFs is now serving as fuel for Bitcoin rallies.
“A lot of pent-up demand based on the spot Bitcoin ETFs is coming to market.
GBTC (Grayscale Bitcoin Trust) uplisted in January of this year and that really opened doors to a lot of other spot ETFs coming to market and so we’re seeing tremendous flows and tremendous investor demand and that’s really also outpacing the supply of Bitcoin coming into the market every day which is being 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 crypto by market cap.
“We’re just at the tipping point. I think many of my colleagues in the industry have called for a new wave of adoption as Bitcoin ETFs become available through advised wealth channels.
There’s over $40 trillion of advised wealth in the US and they largely have not been participating in Bitcoin or the crypto asset class more broadly. We think we’re in the early innings of this.”
Bitcoin is trading for $61,885 at time of writing, an increase of about 26% from its price when the ETFs were approved.
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