Grayscale Investments CEO Michael Sonnenshein has responded to JPMorgan (NYSE: JPM) CEO Jamie Dimon’s recent remarks against Bitcoin (BTC) and other cryptocurrencies, saying that the digital asset class is here to stay and that traditional financial institutions need to adapt to the changing landscape.
Dimon, who has been a vocal critic of Bitcoin and crypto for a long time, reiterated his stance during a Senate appearance, where he suggested that the US government should outlaw these digital assets. He claimed that the only true use case for crypto is for criminals, drug traffickers, money launderers, and tax evaders.
“I’ve always been deeply opposed to crypto, bitcoin, etc. […] The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance. […] If I was the government, I’d close it down,” Dimon said.
Sonnenshein Says Crypto Is A Technology Investment
Sonnenshein, on the other hand, expressed a different view during an interview with Yahoo Finance on November 7, arguing that Bitcoin is considered a technology investment or a risk asset and that investor interest in this asset class is only growing. He emphasized that financial institutions must incorporate new technologies, such as crypto, into their offerings.
“I think every executive, particularly in the financial services space, is going to have their own opinions on new technologies and whether that’s crypto or bitcoin specifically. But if you take a big step back, there is no question that this asset class is here to stay, that investor interest in this asset class is only growing,” Sonnenshein said.
Bitcoin Surges Past $40,000 Amid ETF Hopes
Meanwhile, Bitcoin has been on a bullish run, breaking above the $40,000 mark for the first time since April 2022. The rally has been partly driven by speculation surrounding the approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC).
Grayscale Investments is among the entities that have applied for a Bitcoin ETF and are awaiting feedback from the SEC. Sonnenshein has expressed optimism that the product will gain regulatory approval, citing the increased understanding of cryptocurrencies among regulators as a positive sign.
As of December 7, 2023, Bitcoin was trading at $$43,800, down by 0.20% in the last 24 hours. The flagship cryptocurrency briefly touched the $44,000 level, a new high since April 2022.
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