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Grayscale CEO Says Crypto Interest Is Rising From Pension, Endowment Funds

Michael Sonnenshein said institutions are also making larger allocations to its crypto products.

Updated Sep 14, 2021, 10:53 a.m. Published Jan 8, 2021, 12:00 p.m.

Michael Sonnenshein, the new CEO of digital asset manager Grayscale Investments, said Friday a wider range of institutional investors are now taking an interest in cryptocurrency.

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“We’ve started to see participation not just from the hedge fund segment, which we’ve long seen participation from, but now it’s recently from other institutions, pensions and endowments,” Sonnenshein told Bloomberg.
"The sizes of allocations they are making are growing rapidly as well,” he said.
Sonnenshein took over from Barry Silbert as CEO Thursday, having been the firm's managing director for three years.
Grayscale offers a number of cryptocurrency trusts, bringing investors exposure to the asset class without needing to hold the underlying assets directly.
According to a Thursday tweet, the firm now has $27.5 billion in assets under management.
Also today, Grayscale announced it has reduced its management fee on the Digital Large Cap Fund from 3.0% to 2.5%.
The New York-based, SEC-regulated firm is owned by Digital Currency Group, the parent company of CoinDesk.

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Tanzeel Akhtar

Tanzeel Akhtar has contributed to The Wall Street Journal, BBC, Bloomberg, CNBC, Forbes Africa, Financial Times, The Street, Citywire, Investing.com, Euromoney, Yahoo! Finance, Benzinga, Kitco News, African Business Magazine, Hedge Week, Campden Family Office, Modern Investor, Spear's Wealth Management Magazine, Global Investor, ETF.com, ETF Stream, CIO UK, Funds Global Asia, Portfolio Institutional, Interactive Investor, Bitcoin Magazine, CryptoNews.com, Bitcoin.com, The Local, The Next Web, Mining Journal, Money Marketing, Marketing Week and more. Tanzeel trained as a foreign correspondent at the University of Helsinki, Finland and newspaper journalist at the University of Central Lancashire, UK. She holds a BA (Honours) in English Literature from the Manchester Metropolitan University, UK and completed a semester abroad as an ERASMUS student at the National and Kapodistrian University of Athens, Greece. She is NCTJ Qualified - Media Law, Public Administration and passed the Shorthand 100WPM with distinction. She does not currently hold value in any digital currencies or projects.