Grayscale CEO Michael Sonnenshein pushes back against ESG-related criticisms of Bitcoin's environmental impact.
Disclosure
Sonnenshein: Grayscale relies on sister firm Genesis for all asset sourcing
“So our authorized participant and does all of our sourcing and trading for us is our sister firm called Genesis. They're a broker dealer based here in New York.”
Assertion Supported
Sonnenshein: Institutional allocators are rotating out of gold funds into Bitcoin
“Some investors are carving out some of their gold allocation and moving it into digital assets like Bitcoin. We don't find it the least bit coincidental that we saw some of the largest outflows on record from gold funds in Q four of last year when Bitcoin star…”
Insight
Sonnenshein: Institutional career risk has flipped to FOMO for crypto allocators
“They have all capitulated from the career risk Of getting involved or being the guy in the investment committee that raises their hand and says, well, why don't we put 50 basis points into crypto or, you know, and capitulated to the career risk of not being th…”
Insight
Sonnenshein: Bitcoin is the worst mechanism for illicit activity
“Digital currencies like Bitcoin. Are, in fact, the worst, and again, I'll repeat, the worst mechanism for you to use if you would like to do anything the least bit untoward, nefarious, legal, you choose your own word. Every transaction in Bitcoin, the best way…”
Prediction Not checkable as stated
Sonnenshein: Users will eventually pay a premium for financial privacy assets
“And I think a lot of folks don't yet fully appreciate that over time, they may in fact be paying a premium for that privacy, and we're living in a world of credit card hacks and identity thefts and you name it, and so I think that's something that is definitel…”
Insight
Sonnenshein: Crypto valuation requires analyzing on-chain data rather than DCF models
“Investors should be thinking about valuing these assets in a way that is distinct from the way that they may look at valuation for more traditional assets, where they're, they might be able to do a discounted cash flow, For Coca-Cola, but for Bitcoin, they act…”