• Grayscale’s CEO says the corporate has been by means of the crypto winter earlier than.

• Sonnenshein expects extra regulation and consolidation within the cryptocurrency trade.

• Nevertheless, he believes crypto, as an asset class, is right here to remain.

Extra regulation is anticipated within the cryptocurrency trade

Grayscale CEO, Michael Sonnenshein, advised CNBC in an interview on Monday, that he expects extra regulation within the cryptocurrency trade. 

“It’s a #crypto winter, we have been by means of this earlier than. In the intervening time, what you are going to see is extra regulation and extra consolidation within the trade,” says @Grayscale CEO @Sonnenshein. “I’ve by no means been extra assured that crypto as an asset class is right here to remain.” pic.twitter.com/SqWhfvkUvp

— Squawk Field (@SquawkCNBC) December 19, 2022

Whereas speaking to CNBC’s Squawk Field, Sonnenshein acknowledged that it’s the crypto winter, and the corporate has been there earlier than. 

“It’s a crypto winter, we’ve been by means of this earlier than, sadly, we’re going by means of it once more, and we might should undergo it once more sooner or later.  In the intervening time, what you’re going to see on this crypto winter could be extra regulation and extra consolidation within the trade. We’ve seen repeatedly dangerous actors weeded out of the ecosystem, and crypto emerges extra resilient and stronger every time we see a winter.”

When requested if he expects the scenario to play out the identical approach this time round, the Grayscale CEO stated he does. He added that;

“I’ve been within the crypto house for 9 years. I’ve been by means of all types of cycles, and I’ve by no means been extra assured and optimistic that crypto as an asset class is right here to remain.”

The Grayscale Bitcoin Belief continues to underperform

The Grayscale Bitcoin Belief (GBTC), the main funding product provided by Grayscale, has been underperforming in latest months. 

Final week, the Grayscale Bitcoin Belief (GBTC) shares hit a record-high low cost charge relative to the worth of Bitcoin, surpassing 50%.

Concern about Grayscale’s reserves, larger charges and different challenges are the rationale behind the low cost. Our analyst believes that the low cost is not going to shut any time quickly. 

The rise in low cost got here shortly after the US Securities and Trade Fee (SEC) reaffirmed its causes for denying Grayscale’s utility to transform the GBTC into an exchange-traded fund (ETF).