A digital dollar won’t ruin Bitcoin, according to two cryptocurrency fund managers.
As central banks around the world consider digitizing their fiat currencies, the trend could actually drive more investors into crypto, Grayscale’s Michael Sonnenshein and Osprey Funds’ Greg King told CNBC this week.
“That will not displace market share or, if at all, compete with decentralized currencies like Bitcoin,” said Sonnenshein, CEO of Grayscale, in a Monday interview in CNBC’s “ETF Edge”.
“I think they are all trends toward digitizing money and something that investors and just your average person … who may not be in the investment market can shed light on,” said Sonnenshein.
Grayscale operates the world’s largest Bitcoin-based fund, the Grayscale Bitcoin Trust (GBTC), with over $ 24 billion in assets under management.
While Bitcoin is not yet widely established as a payment mechanism, its role as a store of value could only be strengthened with the introduction of government-backed digital currencies, said King, the founder and CEO of Osprey, another provider of bitcoin funds.
“Imagine that the world’s fiat currencies are digitized. In fact, I think that is pushing more people into something like Bitcoin because, frankly, it would give governments even more control than they already have on their money supply, and a lot of people are raising concerns about this type of control for Bitcoin “he said in the same” ETF Edge “interview.
In addition to the Osprey Bitcoin Trust (OBTC), King’s company also operates the Osprey Algorand Trust, based on technology that supports numerous central bank digital currency projects.
With increasing global adoption, Bitcoin appears to have a strong year ahead of it, both CEOs said.
“I am more encouraged than ever before to see who participates in the ecosystem and to what extent they participate in the asset class,” said Sonnenshein. “What that ultimately means for the price remains to be seen, but I think the institutionalization of this asset class has arrived and will remain.”
King expected what he viewed to be the “bull market” in Bitcoin to continue.
“We think it will be higher,” said King. “I would say it breaks decisively up through 40,000, then it will continue. If it breaks down we could get into trouble. I think it’s bullish. But we take the medium to long-term view . ” Anyway, I think this is a good buying opportunity. “
Bitcoin was trading almost 2% higher on Friday.