🎙️ Grayscale: $10B Bridge to Crypto | Michael Sonnenshein Bankless

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Episode: #38 – The World Is Waking Up To Crypto | Raoul Pal

November 2nd, 2020

Michael Sonnenshein is the Managing Director at Grayscale Investments, the largest digital currency asset management company by far.

You may have seen a GBTC or ETHE products in your Schwab account, a way to gain price exposure to ETH and BTC.

But have you ever wondered what those actually things are? How do they work? What’s the importance of them?

What’s next for Grayscale?

We’re going to talk about that today with Michael.

Grayscale built a bridge for almost $10B to flow into the crypto world by working inside the legacy system, rather than outside of it. 

Listen to this podcast to see how Grayscale is helping drive global adoption for crypto! 

Here’s everything we talked about:

Retail products:

  • What Greyscale products can the average, unaccredited retail investor buy today?

  • What’s the difference between GBTC/ETHE and an ETF?

    • What are the fees?

Accredited investors products ($1m in assets or $200k per year)

  • How do accredited investors power the Grayscale trust?

  • What narratives that are driving the inflows?

  • What are the most popular products with this group?

    • Bitcoin Trust: $39.5 million

    • Ethereum Trust: $9.0 million 

    • Large Cap Fund: $1.1 million 

Bitcoin Investor Study – what were the takeaways?

Size of Greyscale relative to supply

  • How much BTC supply – 400k in June (3-4% of all Bitcoin)?

    • As a proportion of mined BTC?

  • How much ETH supply do you own?

  • Can Grayscale do a staked ETH product? Any other yield-bearing products?

What’s Greyscale’s next move?

  • Expanding more outside BTC?

  • Getting acquired?

  • AUM size?

  • Specifically with DeFi?


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Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.


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🎙️ Grayscale’s $10B Bridge to Crypto | Michael Sonnenshein Bankless