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

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A digital dollar will not doom bitcoin, based on two cryptocurrency fund managers.

As central banks around the globe think about digitizing their fiat currencies, the development may truly push extra buyers into crypto, Grayscale’s Michael Sonnenshein and Osprey Funds’ Greg King informed CNBC this week.

“That won’t displace or, if something, take market share or compete with decentralized currencies like bitcoin,” Sonnenshein, the CEO of Grayscale, stated in a Monday interview on CNBC’s “ETF Edge.”

“I believe all of it traits in direction of the digitization of cash and one thing that buyers and simply your common particular person … who will not be within the funding market can glom onto as effectively,” Sonnenshein stated.

Grayscale runs the most important bitcoin-based fund on the planet, the Grayscale Bitcoin Trust (GBTC), with over $24 billion in belongings beneath administration.

Whereas bitcoin has but to determine itself broadly as a fee mechanism, its function as a retailer of worth could solely strengthen with the introduction of government-backed digital currencies, stated King, the founder and CEO of Osprey, one other bitcoin fund supplier.

“Think about the world’s fiat currencies are digitized. I truly suppose that pushes extra folks into one thing like a bitcoin as a result of, frankly, that may give governments much more management than they have already got round their cash provide, and lots of people get into bitcoin for considerations about that sort of management,” he stated in the identical “ETF Edge” interview.

Along with the Osprey Bitcoin Trust (OBTC), King’s agency additionally runs the Osprey Algorand Trust, based mostly on a know-how that helps quite a few central financial institution digital forex initiatives.

With world adoption selecting up, bitcoin seems to have a robust 12 months forward of it, each CEOs stated.

“I’m as inspired as I’ve ever been by who’s collaborating within the ecosystem and the extent to which they’re collaborating within the asset class,” Sonnenshein stated. “What that in the end means for the worth stays to be seen, however I believe the institutionalization of this asset class has arrived and it is right here to remain.”

King anticipated what he noticed as a “bull market” in bitcoin to persist.

“We expect it will be greater,” King stated. “I’d say it breaks decisively upward by way of 40,000, then it will maintain going. If it breaks to the draw back, we might be in for some hassle. My view is that it is bullish. However we take the mid to long-term view anyway, so, this represents a great shopping for alternative in my ebook.”

Bitcoin traded practically 2% greater on Friday.


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