Capital Allocators – Inside the Institutional Investment Industry Crypto for Institutions 2 – Michael Sonnenshein – A Path to Entry (Capital Allocators, EP.181)
Mar 11, 2021
Michael Sonnenshein, CEO of Grayscale Investments, shares his expertise as the leader of the world’s largest digital currency asset manager. He discusses how institutional investors can effectively engage with cryptocurrency, covering the intricacies of custody solutions and trading dynamics. The conversation dives into Grayscale’s product selection process and the evolution of cryptocurrency investment options. Sonnenshein highlights growing institutional interest, emphasizing the significance of education and understanding within this rapidly changing asset class.
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Unexpected Career Path
- Michael Sonnenshein's career path took an unexpected turn when he interviewed at SecondMarket.
- He was considering a hedge fund role but was captivated by Barry Silbert's vision for Bitcoin.
Grayscale's Role
- Grayscale is the world's largest digital currency asset manager, offering exposure to digital currencies through securities.
- This approach addresses investor difficulties in directly sourcing, transferring, and storing digital assets.
Challenges of Crypto Investing
- Institutional investors face challenges when accessing cryptocurrency, including counterparty risk and unfamiliar trading venues.
- Choosing a credible counterparty involves assessing regulatory oversight, AML/KYC compliance, and other security measures.
