Benzinga - Grayscale Investments CEO Michael Sonnenshein in his recent CNBC appearance voiced his opinion about the potential impact of a spot Bitcoin ETF on the crypto market.
What Happened: Sonnenshein highlighted that a spot Bitcoin ETF could "unlock" around "$30 trillion worth of advised wealth.” He added that the ETF approval would be the best way to tap into the vast resources held within advised assets in the U.S.
Sonnenshein added, "We're really taking about the advised market here in the U.S. Which is today, about $30 trillion worth of advised wealth that we hope the approval of spot Bitcoin ETFs, the up-listing of GBTC, will allow for that opportunity and for those investors to partake in it as well.”
Grayscale runs Grayscale Bitcoin Trust (OTC: GBTC) and Grayscale Ethereum Trust (OTC: ETH), among other crypto-centric securities.
Institutional adoption, recognition of Bitcoin as a legitimate asset class and opening doors for financial advisors and institutional investors for smooth participation in the crypto market are some of the benefits Sonnenshein highlighted as happening after the spot ETF approvals.
In a Bloomberg TV interview, yesterday, Sonnenshein said that the U.S. SEC should give the green signal to multiple spot Bitcoin ETFs at once. He stated, “I think that the SEC should and does want to create an even playing field.”
Also Read: Will Spot Bitcoin ETF Approval Be A Boon Or Bane? Here's What Industry Experts Say
Why Does It Matter: Crypto analyst, MDBitcoin took to his X account after Sonnenshein's comments and stated, “Imagine only a 5%-10% conversion rate of that money.”
"The approval of the spot Bitcoin ETFs will unlock $30 trillion of managed wealth," -Grayscale CEO.Meanwhile, another X user The Bitcoin Therapist said that after the $30 trillion in capital is unlocked to buy a spot Bitcoin ETF, “It will send the price skyrocketing. The FOMO will be insane. Then the halving in April followed by a recession and a FED pivot with QE to infinity before the election cycle.”Imagine only a 5%-10% conversion rate of that money.
With conservative multipliers and without network effects, after the injection of $30 trillion into a spot #Bitcoin ETF, the… pic.twitter.com/HHob3zylNa
— MDB (@MDBitcoin) December 18, 2023
MDBitcoin also stated his opinion today, “Bitcoin Spot ETFs are poised to revolutionize the BTC ecosystem entirely. If Fidelity, BlackRock, and ten other ETF issuers all agree that BTC is an asset class, Do you think its market size should potentially be 10 to 100 times larger than it currently is?”
Price Action: In the past 24 hours of trade, Bitcoin prices surged 1.3% higher with trading volume expanding by 11.05%. While the weekly gain was softened to 2.7%, the past 30-day gains stand at 14.5%.
Read Next: Bitcoin Moves Higher Amid Positive Analysts Sentiments, Analyst Sees Numerous Spot ETFs Approvals Before January 2024
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