Grayscale: Investors see Bitcoin as a store of value and inflation hedge

The growth in the number of Bitcoin investors, driven by major players in the financial services sector, signals the viability of the first cryptocurrency as an asset class, said Michael Sonnenshein, managing director of Grayscale Investments, in an interview with Business Insider.

The value of the firm’s crypto assets under management recently surpassed $10 billion, of which more than 80% goes to the Bitcoin Trust.

Sonnenshein noted that among investors who added cryptocurrency to their portfolios this year, the firm has seen a range of motives. One of the key drivers of investment was the COVID-19 pandemic.

He added that investors are no longer swayed by the argument that Bitcoin has failed as a currency, since we do not use it to buy a cup of coffee.

“I think that by purchasing and including Bitcoin in a portfolio, they understand — this is a store of value, inflation hedge, digital gold and a new form of money that is much better suited for today’s digital world than traditional stores of value such as gold,” Sonnenshein says.

According to him, investors view the first cryptocurrency as one of the most important next steps in the evolution of money.

Earlier, Grayscale Investments found that more than half of investors in the United States are interested in buying Bitcoin.

Several months ago Sonnenshein spoke about expectations of inflows of investment into cryptocurrency from Millennials, to whom $68 trillion of capital will pass in the coming years.

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