According to the CEO of Grayscale, pension funds are actively pursuing Bitcoin diversification

Michael Sonnenshein, CEO of digital asset management company Grayscale Investments, has said that more pension funds are considering incorporating cryptocurrencies into their portfolios.

It is becoming more popular to use Bitcoin as a kind of portfolio diversification, according to Sonnenshein, who spoke with CNBC in an interview on June 10.

Volatility is not the key concern for investors, according to the CEO, when looking at the industry over time. Investors, he said, are paying more attention to the regulatory environment.

A number of the world’s top pension funds and endowments, as well as a number of elected officials, have shown an interest in learning more about the potential of cryptocurrency investments. “It’s a new sort of agreement,” he remarked.

According to Sonnenshein, the disclosure comes after Fidelity announced that it will allow clients to invest in Bitcoin. According to Secretary Janet Yellen of the US Treasury Department, Bitcoin isn’t the best way to save for retirement.

Bank for International Settlements: Mike Novogratz predicts the next crypto cycle to begin in Q4 of 2022. It is impossible for cryptocurrency to fulfil the function of money in society.

Aside from the fact that the long-term returns of Bitcoin are well known, Sonnenshein slammed Yellen for pressing for limits on Bitcoin access.

As part of its ongoing research into new crypto investment products, Grayscale is looking into the possibility of a Bitcoin spot ETF. The Securities and Exchange Commission (SEC) is now reviewing Grayscale Bitcoin Trust (GBTC) to see whether it can be converted into a spot Bitcoin ETF (ETF).

However, one analyst thinks that if the SEC rejects Grayscale’s application, the company may sue the agency.

A former Obama administration solicitor general Donald B. Verrilli Jr. has just been added to the company’s legal staff.

The SEC has until July 6 to respond to the application, notwithstanding the opinion of legal experts that the agency has no basis for rejecting the spot ETF.

Also Read: Jack Dorsey Is Developing A Bitcoin-Based Version Of “Web 5”