Grayscale CEO says spot Bitcoin ETFs will enable market inflow of $30 trillion in recommended assets

Michael Sonnenshein, CEO of leading asset management firm Grayscale Investments, believes that allowing spot Bitcoin exchange-traded funds (ETFs) could bring $30 trillion in assets under management to the crypto market.

In an interview with CNBC's Squawk Box, Sonnenshein said that the Bitcoin (BTC) market is very bullish next year as many investors are adding the digital asset to their portfolios.

Possibility of a projected wealth inflow of $30 trillion

Sonnenshein said the optimism in the market was due to Grayscale's court victory a few months ago, which boosted the community's hopes for spot Bitcoin ETF approval. Recall that in August, a US court ordered the Securities and Exchange Commission (SEC) to reconsider the asset manager's application to convert its flagship GBTC fund into a Bitcoin ETF.

The Grayscale CEO opined that the launch of spot Bitcoin ETFs would allow exposure to digital assets to a portion of the investor community that was previously excluded from the opportunity to gain exposure to BTC. He said that the $30 trillion US recommended market would become part of the investment community with BTC exposure following the launch of the products.

“So we're really talking about the advised market here in the U.S., which today is estimated to be worth about $30 trillion in assets, which we hope the approval of spot Bitcoin ETFs and the high listing of GBTC will address and will enable those opportunities.” “We also want to encourage investors to participate,” he explained.

Grayscale is among more than a dozen traditional finance firms racing to launch the first Bitcoin ETF in the US. Asset managers in the running include BlackRock, Ark Invest, Fidelity, Galaxy Digital, Franklin Templeton and VanEck.

Biggest development on Wall Street in 30 years

Sonnenshein's comments on the expected ETF approval follow a similarly big remark from Michael Saylor, co-founder and chief executive of business intelligence firm MicroStrategy.

In a recent interview with Bloomberg, the Bitcoin proponent said the approval of a spot Bitcoin ETF could be the biggest development on Wall Street in the last 30 years.

Meanwhile, the SEC is expected to approve all or some spot Bitcoin ETF applications by January 2024.

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