Grayscale targets institutional DeFi funds


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Michael Sonnenshein, CEO of digital asset management giant Grayscale, has announced a new investment vehicle for the company that is geared towards decentralized financial assets (DeFi).

Sonnenshein announced Grayscale’s proposed DeFi Fund and Index during an appearance on CNBC’s Squawk Box. Outlining the purpose of the new product, Grayscale’s CEO said the fund will offer its institutional clients exposure to DeFi assets such as Uniswap (UNI) and Aave.

According to the Grayscale boss, the decision to create a DeFi fund, the company’s 15th crypto investment product, was due to the growing interest in popular crypto assets in the decentralized finance space.

With institutional interest in crypto showing signs of diversifying away from just Bitcoin (BTC), both Ether (ETH) and DeFi assets are reportedly coming up. As early as April, Cointelegraph reported that the DeFi money markets were becoming increasingly attractive for institutional investors.

As more and more regulated companies enter the DeFi space, there is increasing talk of regulations for the niche market of the crypto market. Some industry stakeholders even say that greater regulatory clarity is needed in order for the DeFi space to interact with real-world assets.

Commenting on other institutional investment opportunities for crypto, Sonnenshein stated that Bitcoin Exchange Traded Funds (ETFs) will be approved in the United States at some point. As Cointelegraph previously reported, the Grayscale CEO noted that the market was “a few maturity points” away from seeing an approved ETF.

Related: Grayscale ‘100% Committed’ to Turn GBTC into Bitcoin ETF – CEO

In fact, Grayscale is reportedly working with BNY Mellon to convert its Bitcoin Trust into a Bitcoin ETF. According to Sonnenshein, the crypto asset manager is 100% committed to converting its flagship GBTC product into a Bitcoin ETF.

The U.S. Securities and Exchange Commission has not yet approved a Bitcoin ETF in the country. In early July, the SEC postponed its decision on Wisdom Tree’s Bitcoin ETF filing.