2021-07-20 12:20:44
Grayscale Opens New DeFi Fund Pending Approval of Bitcoin ETF Launch Application
Digital asset manager Grayscale Investments is launching a new thematic fund and index related to the Decentralized Finance (DeFi) space. Grayscale CEO Michael Sonnenschein announced this today on CNBC.
Grayscale's existing and potential customers are showing significant interest in DeFi assets, he said. As a result, it was decided to open a new institutional-level fund, which will allow investing in many projects using a single mechanism. The fund's basket is expected to include a wide range of DeFi tokens, including Uniswap (UNI) and Aave (AAVE).
Sonnenschein noted that this is the 15th investment instrument managed by the company. Among other things, it offers funds based on cryptocurrencies such as Bitcoin and Ether, as well as a fund of digital assets with a large capitalization. In addition, Grayscale is seeking permission to convert its Bitcoin trust into an ETF. In a conversation with CNBC, Sonnenschein said that approval of the relevant application with the Securities and Exchange Commission is only a matter of time.
“I think we are looking for a couple of proofs of the maturation of the underlying market, and these are really the last stages that we think regulators will need before approving these types of products and giving investors the protection they are looking for,” Sonnenschein said.
The CEO of Grayscale noted that the Bitcoin ecosystem has had to constantly face various challenges over the past years, and the ban on mining in China has led to a more even distribution of computing power in the world. He urged not to overestimate the short-term volatility in the bitcoin market and focus on the medium or long term when buying cryptocurrency.
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