Grayscale Targets DeFi Institutional Funds

The CEO of digital asset management giant Grayscale, Michael Sonnenshein, revealed the company’s new investment vehicle that will focus on decentralized finance (DeFi) assets. During an appearance on CNBC’s Squawk Box, the CEO announced Grayscale’s proposed DeFi fund and index. In the appearance, he also talked about the purpose of this new product. This DeFi fund will provide its institutional clients with popular DeFi assets like Uniswap (UNI) and Aave.

This DeFi fund is the company’s 15th crypto investment product. According to Grayscale’s person in charge, the decision to create a DeFi fund was taken because of the unstoppable growing interest of people in popular crypto assets in the decentralized finance (DeFi) sector. The institutions’ interests in cryptocurrencies indicate diversification away from only Bitcoin (BTC). This is why both DeFi and Ether assets have reportedly started to come up in every conversation. In April this year, the famous crypto news website Cointelegraph reported that several DeFi money markets have begun to become more fascinating to institutional investors. Nowadays, the number of regulated companies entering the DeFi market is continuously increasing. This asks for more rules and regulations for the niche crypto market sector.

A lot of industry stakeholders also believe that in order for the DeFi space to interact with real-world assets, clearer supervision is needed. While commenting on other institutions’ cryptocurrency investment opportunities, Sonnenshein also stated that a Bitcoin exchange-traded fund (ETF) will be eventually approved in the United States. As it was earlier reported by Cointelegraph, the CEO of Grayscale commented that the current market was a “couple of points of maturation” away from seeing an approved exchange-traded fund (ETF).

As a matter of fact, the company is currently working with the Bank of New York Mellon. It has the aim of converting its Bitcoin Trust into a Bitcoin ETF. Furthermore, Sonnenshein also stated about the crypto asset management company. He said that it is 100% committed to transforming its flagship product GBTC into a Bitcoin ETF. The U.S. Securities and Exchange Commission has not yet approved any Bitcoin ETF in the country. At the beginning of July,  the SEC postponed its decision on Wisdom Tree’s Bitcoin ETF application.