According to Bloomberg, Grayscale Investments CEO Michael Sonnenshein discussed the importance of considering factors such as fees, asset manager, issuer, size, liquidity, and track record when choosing investment products during an interview on Bloomberg Television. He addressed the competition from nine rival exchange-traded funds (ETFs) that have recently launched, some offering zero fees to attract investors. Since Grayscale's trust converted to an ETF, it has experienced approximately $1.2 billion in outflows.
Sonnenshein also mentioned the covered call strategy, which allows investors to have passive long exposure to Grayscale Bitcoin Trust (GBTC) while earning additional income. He suggested that the covered call filing indicates a possibility of reduced volatility in the crypto market. However, he emphasized that investor interest, rather than volatility, was the primary motivation behind the covered call filing. He stated, "I don’t think it’s for us so much a measure of volatility but instead that we’ve heard from investors that they want to be passively long of that asset class." GBTC shares fell for a third day, declining about 2% to $37.55, while Bitcoin was down about 2.6% to $42,315.
