The launch of the Bitcoin ETF has been one of the most talked-about and controversial events in the cryptocurrency industry. Several companies have tried to launch the asset only to be thwarted by regulatory authorities such as the Securities and Exchange Commission [SEC].
The latest company to come to the forefront about a Bitcoin ETF launch was Grayscale Investment Fund, which recently filed Form 10 with the SEC that will designate the organization’s Bitcoin trust.
Michael Sonnenshein, the Managing Director at Grayscale Investments, had said that the move would help in tapping more institutional investors who act as markers for positive growth. The MD was asked about the timing of the latest filing and claimed that despite the Trust being used for years, the need voiced by the community right now was tremendous.
Shonnenshein further added:
“The need for a Bitcoin ETF was always on the rise and currently it is amazing to see the support for it. Ever since we started in may 2015, the plan was to launch the ETF in a positive regulatory climate and if you look at the trailing trading volume for the past three years, has been declining year after year.”
Sonnenshein added that investors in the space were now actively looking for areas to invest and were even asking around for access products that will enable them to get started in the digital assets industry.
He was also asked about why investors would not directly invest in the world’s largest cryptocurrency rather than going to specific organizations for the very same. The Managing Director said that most of the institutions were worried about the issue around cryptocurrency custody and regulations.
According to him, companies that try to work without a dedicated crypto wing generally end up buried in logistics such as ‘Who at the company will store PKs?’ as well as assigning duties to people who will conduct due diligence in the space. Sonnenshein added:
“We create the look and feel of the product that institutional investors will be able to use. In Q3, we had 84 percent of inflows just from hedge funds that needed their digital assets dealt with efficiently.”
One other company that overcame this issue recently was Fidelity, which received its own bitcoin trading and custody license in the city of New York. The New York State Department of Financial Services had granted the permit that will now allow Fidelity ton securely store, purchase, sell and transfer Bitcoin to citizens in the city.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.