Grayscale CEO: 6 themes that will impact the development of the crypto market in 2021

Grayscale's newly appointed CEO Michael Sonnenshein believes that 2021 will be another critical year for digital asset investment as institutional capital and national adoption of digital assets will drive the next bull run.

In his keynote address at this year’s virtual CFC St. Moritz Conference, Sonnenshein pointed out three key investment themes that underpinned Bitcoin’s (BTC) surge in 2020. They are legendary investors and well-known companies investing in BTC and the strengthening regulatory framework for digital assets.

Sonnenshein believes that this trend will continue in 2021 as more investors invest in Bitcoin and other digital assets. He also pointed out several companies that may influence the development of the digital currency market in the near future.

Sonnenshein believes that there are six major themes that investors should pay attention to in 2021:

• Reduced professional risks associated with digital asset investments

• Growing interest among financial advisors

• Growth of Crypto Mining in North America and Clean Energy

• Add stablecoin integration

• National adoption of digital assets

• New regulatory developments

Regarding state adoption, Sonnenshein speculated that this could include pilots of central bank digital currencies (CBDCs), as well as the possibility of Bitcoin serving as a strategic reserve for some governments.

Regarding miners, he said that Grayscale’s sister company Foundry has become the largest cryptocurrency miner in North America.

Digital Currency Group, the company behind Grayscale and Foundry, revealed last year that it would invest $100 million to mine bitcoin and other digital assets in North America.

Grayscale’s investment products have become a bellwether for the adoption of digital assets. The company’s assets under management soared from $2 billion at the beginning of 2020 to $20 billion by the end of the year. This growth momentum has not yet weakened, and as of January 19, the total asset management market has reached $28.1 billion.

Updated January 19, 2021: Net assets under management, holdings per share, and market prices per share for our investment products.
Total AUM: $28.1 billion $BTC $BCH $ETH $ETC $ZEN $LTC $XLM $ZEC
— Grayscale (@Grayscale) January 19, 2021

Grayscale holds about 3% of the circulating supply of Bitcoin, which seems to have an attractive effect on the price of Bitcoin. Strategists at JPMorgan Chase, led by Nikolas Panigirtzoglou, believe that the investment company is the key to Bitcoin returning to above $40,000 in the short term. In order to achieve this goal, Grayscale needs to maintain a purchase rate of $100 million per day.

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