Crypto

Digital dollar could push more people towards bitcoin, says fund manager

According to two crypto fund managers, the digital dollar will not doom bitcoin.

As central banks around the world are considering digitizing their fiat currencies, this trend could actually push more cryptocurrency investors, Michael Sonnenshine of Grayscale and Greg King of Osprey Funds told CNBC.

“It will not crowd out or take market share or compete with decentralized currencies like bitcoin,” Sonnenstein, CEO of Grayscale, told CNBC’s ETF Edge on Monday.

“I think that all the trends towards the digitalization of money and something that investors and just an ordinary person … who may not be in the investment market, can also pay attention,” Sonnenstein said.

Grayscale operates the world’s largest bitcoin fund, the Grayscale Bitcoin Trust (GBTC), which manages over $ 24 billion in assets.

According to King, founder and CEO of Osprey, another provider of bitcoin funds, while bitcoin has yet to gain widespread acceptance as a payment mechanism, its role as a store of value could only grow with the introduction of government-backed digital currencies.

“Imagine the world’s fiat currencies are being digitized. I actually think this is pushing more people towards something like bitcoin, because honestly, it would give governments even more control than they already have over their money supply, and a lot of people go for it. Bitcoin is out of concern about this type of control, ” he said in the same interview with ETF Edge.

In addition to the Osprey Bitcoin Trust (OBTC), King’s company also operates the Osprey Algorand Trust, which is based on technology that powers many central bank digital currency projects.

With the resumption of global adoption of Bitcoin, there will be a good year ahead, according to the two CEOs.

“I am more excited than ever who participates in the ecosystem and to what extent they participate in the asset class,” Sonnenstein said. “What this ultimately means for price remains to be seen, but I think the institutionalization of this asset class has already begun and will continue. “

King expected what he considered the bitcoin bull market to continue.

“We think it will be higher,” King said. “I would say that he will definitely cross the 40,000 mark and then he will continue. If it fails, we may have problems. I think this is optimistic. But we are in the medium to long term anyway, so this is a good buying opportunity in my book. “

Bitcoin traded nearly 2% more on Friday.

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