Tag: Grayscale Investments

Grayscale Launches New Entity to Manage Growing Funds

by Blockchain News

Grayscale Investments, the cryptocurrency asset manager, has announced the launch of a new entity, the Grayscale Funds Trust, to manage its publicly traded financial products in-house. The move indicates the company’s growing confidence in its ability to manage its funds internally.

In addition to the launch of the new trust, Grayscale has filed a registration statement with the United States Securities and Exchange Commission (SEC) for three new cryptocurrency-focused exchange-traded funds (ETFs). The new funds include a Bitcoin Composite ETF, an Ethereum Futures ETF, and a Privacy ETF.

Grayscale’s Bitcoin Composite ETF will invest in exchange-traded products related to or backed by Bitcoin, including Bitcoin mining firms. The Ethereum Futures ETF will offer indirect exposure to the potential future value of Ether through shares that track ETH’s price. The Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.

However, until the registration statement is approved by the SEC, the funds will not be available for public purchase. This move comes as Grayscale continues to navigate a conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product.

In January 2021, Grayscale sued the SEC for denying its application, arguing that the SEC acted unfairly in treating crypto spot traded exchange-traded products differently from futures products. Grayscale claims that there is a 99.9% correlation between prices in the Bitcoin futures market and the spot Bitcoin market. Despite the SEC’s approval of several Bitcoin Futures ETFs, it has so far rejected every application for a spot Bitcoin investment product due to concerns about exposing investors to potential fraud and market manipulation.

Despite these challenges, Grayscale’s move to launch new crypto ETFs and manage its publicly traded financial products in-house demonstrates the company’s commitment to the cryptocurrency market and its belief in the long-term potential of digital assets.

In conclusion, Grayscale Investments’ launch of the Grayscale Funds Trust and its filing of three new cryptocurrency-focused ETFs is a significant development for the company and the cryptocurrency market as a whole. While the SEC’s approval of these new ETFs is still pending, Grayscale’s continued efforts to introduce crypto-focused investment products is a positive sign for the industry’s growth and adoption.

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Grayscale Files for Three New Crypto ETFs

by Blockchain News

Grayscale Investments, the cryptocurrency asset manager, is seeking approval from the United States Securities and Exchange Commission (SEC) for three new cryptocurrency-focused exchange-traded funds (ETFs). The new funds include a Bitcoin Composite ETF, an Ethereum Futures ETF, and a Privacy ETF.

Grayscale’s Bitcoin Composite ETF will invest in exchange-traded products related to or backed by Bitcoin, including Bitcoin mining firms. The Ethereum Futures ETF, on the other hand, will offer indirect exposure to the potential future value of Ether through shares that track ETH’s price. The Grayscale Privacy ETF will invest in companies working on blockchain-based privacy technology.

Despite previous roadblocks from the SEC over crypto-related ETFs, Grayscale has filed a registration statement for the new ETFs. However, until the registration statement is approved, the funds will not be available for public purchase.

Grayscale also announced the launch of the Grayscale Funds Trust, a new arm of its business that allows it to manage many of its publicly traded financial products in-house. This move indicates the company’s growing confidence in its ability to manage its funds internally.

While Grayscale continues to navigate a conflict with the SEC over converting its $17 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin ETF product, the company remains optimistic about the future of crypto ETFs. In January 2021, Grayscale sued the SEC for denying its application, arguing that the SEC acted unfairly in treating crypto spot traded exchange-traded products differently from futures products. Grayscale claims that there is a 99.9% correlation between prices in the Bitcoin futures market and the spot Bitcoin market.

Despite the SEC’s approval of several Bitcoin Futures ETFs, it has so far rejected every application for a spot Bitcoin investment product due to concerns about exposing investors to potential fraud and market manipulation. However, Grayscale’s move to launch new crypto ETFs and manage its publicly traded financial products in-house demonstrates the company’s commitment to the cryptocurrency market and its belief in the long-term potential of digital assets.

In conclusion, Grayscale Investments’ filing of three new cryptocurrency-focused ETFs and the launch of its Grayscale Funds Trust is a significant step forward for the company and the cryptocurrency market as a whole. While the SEC’s approval of these new ETFs is still pending, Grayscale’s continued efforts to introduce crypto-focused investment products is a positive sign for the industry’s growth and adoption.

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Grayscale Files Form 10 with SEC for its 3 Trusts

by Blockchain News

Grayscale Investments announced on Thursday that it has publicly filed a Registration Statement on Form 10 with the Securities and Exchange Commission (SEC) on behalf of Grayscale® Horizen Trust, Grayscale® Stellar Lumens Trust, and Grayscale® Zcash Trust.

The new Form 10 filings are voluntary and subject to SEC review. If the SEC considers the Registration Statements filed today as effective, then it would designate the trusts (funds) as Grayscale’s investment vehicles to become SEC reporting companies and register their shares, according to Section 12(g) of the Securities Exchange Act of 1934, as amended (the Exchange Act).

This means that accredited investors who buy shares in the Funds’ private placements would have an earlier liquidity opportunity, as the statutory holding period of private placement shares would be reduced from 12 months to six months under Rule 144 of the Securities Act of 1933.

If the registration statements become effective, then the funds would file quarterly and annual reports, current reports, and audited financial statements with the SEC, including complying with all other obligations under the Exchange Act. 

The Trust is a traditional investment product that provides investors with exposure to cryptocurrency in the form of security, thus avoiding the challenges of buying, storing, and safekeeping crypto directly.

The funds are investment products that allow investors to more effectively implement strategic and tactical asset allocations that incorporate digital assets by using the funds’ shares. The move reflects Grayscale’s commitment to move such funds forward through the product pipeline highlighted in the company’s roadmap to launching digital currency ETFs. 

The firm, a New York-based premier digital currency investing and crypto asset management company, already has six SEC reporting products: Grayscale® Bitcoin Trust, Grayscale® Bitcoin Cash Trust, Grayscale® Digital Large Cap Fund, Grayscale® Ethereum Trust, Grayscale® Ethereum Classic Trust and Grayscale® Litecoin Trust.

Grayscale has plans to continue to release new funds to offer diversified exposure to additional cryptocurrencies. The firm still seeks to launch a Bitcoin Spot ETF that has been rejected by the SEC.

Grayscale is aware that Stellar lumen (XLM), Zcash (ZEC), and Horizen (ZEN) are some of the potential cryptocurrencies with good investment opportunities for customers.

 

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Digital Currency Group Announces $250M Share Buyback from Crypto Trusts

by Blockchain News

Digital Currency Group (DCG), the parent company of Grayscale Investments, has announced a new share buyback program projected to be worth $250 million. 

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As revealed by the company, the buyback program will feature a wide range of the company’s trust products with the first buyback covering up to $50 million in total for shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust. 

According to Grayscale, as much as $200 million will also be invested in buyback programs for its other six publicly quoted Grayscale products. These include the Grayscale Bitcoin Cash Trust, the Grayscale Bitcoin Trust, Grayscale Large Cap Fund, Grayscale Ethereum Classic Trust, Grayscale Ethereum Trust, and Grayscale Stellar Lumen Trust.

While the timeline for the share buyback is yet unknown, the company said the move will complement the earlier approvals it has received to purchase shares of GBTC and ETCG, of which DCG respectively has $301.3 million and $4.5 million in authorized share repurchases remaining. The company said the share buyback will be carried out using cash on hand as the company’s management will decide based on its discretion.

The decision to buy back the six core products is perhaps influenced by the valuation plunge of the premium of these products as showcased from the data from otcnode. While the negative premium is all-encompassing, the Grayscale Ethereum Classic Trust is recording the worst plunge at -59.46% at the time of writing.

Amidst the business modifications, Grayscale has considered thus far the plan to convert the Bitcoin Trust into a full-fledged spot Exchange Traded Fund (ETF) product. While the application has been filed with the United States Securities and Exchange Commission (SEC), no feedback has been received yet. 

That the SEC continues to reject other competitors’ applications for a spot Bitcoin ETF has casted doubts on the chances of Grayscale succeeding, however, time is the main determining factor to get the needed closure in relation to the company’s ambition in attracting institutional investors.

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Grayscale Considering Fantom, Algorand For Its Investment Products

by Cryptobriefing


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Grayscale Investments has updated its list of digital assets under consideration for this year. Twenty-five more tokens, including Layer 1 chains, Metaverse applications, and blockchain games, have been added to the list. 

Grayscale Expands Assets Under Consideration

Grayscale is broadening its investment horizons. 

The crypto asset management company updated its list of assets under consideration Monday, adding 25 more tokens. The new additions bring the total number of assets on Grayscale’s radar to 43. In the same announcement, Grayscale announced it had also added Amp, a digital collateral token, to its product family. 



Among the new entrants are several alternative Layer 1 blockchain tokens such as Algorand, Elrond, Fantom, Helium, Holochain, Oasis Network, and Secret Network. These tokens could eventually build on the list of Layer 1 chains offerings already within Grayscale’s product family, such as Ethereum, Solana, and Cardano. 

Another prominent theme in the new round of assets is Metaverse and blockchain gaming applications. Seven of the 25 tokens fall under this category and include Arweave, Axie Infinity, BORA, Enjin, Gala Games, The Sandbox, and Yield Guild Games. Currently, Decentraland’s MANA token is the only Metaverse application Grayscale offers to its investors. 

The remaining tokens Grayscale is considering cover a wide range of DeFi, Web3, and Internet of Things use cases. They include Bancor, BitTorrent, Convex, Decred, Gelato, IOTA, Spell, Stacks, Universal Market Access, and VeChain. 


Grayscale Investments is an asset management company that helps institutions gain exposure to cryptocurrencies. The company is in the process of converting its most popular offering, the Grayscale Bitcoin Trust, into an exchange-traded fund. It is currently awaiting approval from the U.S. Securities and Exchange Commission. 

Disclosure: At the time of writing this feature, the author owned ETH, SOL, FTM and several other cryptocurrencies. 

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Grayscale Strikes Back Against SEC’s ETF Rejections

Grayscale has sent a letter to the SEC expressing opposition to the regulator’s repeated rejection of Bitcoin spot ETFs. Grayscale Notes Spot and Futures Discrimination Over the past several months,…

Grayscale Advances Bitcoin ETF Plans With New Hire 

Grayscale Investments has hired a new global head of exchange-traded funds to lead the conversion of the company’s GBTC trust into a Bitcoin ETF.  Grayscale Hires Global Head of ETFs…

BNY Mellon to Assist Grayscale with Bitcoin ETF Plans

Grayscale Investments has selected the Bank of New York Mellon as its asset servicing provider for the Grayscale Bitcoin Trust. The move is part of the firm’s commitment to converting…

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Digital Currency Group Lands $600M Debt Funding

by Blockchain News

Grayscale Investments’ parent company Digital Currency Group (DCG) said it has secured a $600 million credit funding, billed to power its many diverse operations. 

As announced by the company, Eldridge led and served as the administrative agent of the credit facility, and amongst the lenders and funds which bankrolled the facility includes Capital Group, Davidson Kempner Capital Management, and Francisco Partners. The credit facility will allow the DCG to draw any amount at any time as it looks to bolster its operational capabilities across the board.

“This financing strengthens our ability to respond dynamically to opportunities in the market,” said DCG Founder and CEO Barry Silbert. “We’re very pleased to partner with this cohort of high-quality institutional lenders and, as a profitable and rapidly growing company, we are fortunate to be able to access this growth financing with an attractive cost of capital.”

Beyond Grayscale Investments has more than $50 billion in Assets Under Management (AUM) and DCG is also the parent company to outfits including Genesis, TradeBlock, Luno, Foundry, and Coindesk.

According to the firm, the better part of the funding will be used to bankroll these agencies amidst an ongoing surge in demand in crypto-related services from both retail and institutional investors.

“We’ve solidified our premier market position in recent years through the development and growth of our diversified subsidiaries, continued expansion of our investment portfolio, and via acquisitions,” said DCG CFO Michael Kraines. “This debt financing is an important milestone to ensure DCG continues to play a leading role in the financing and development of this remarkably dynamic sector.”

Earlier this month, the Digital Currency Group raised $700 million from a secondary share sale, capitalizing on the growing desire of hedge funds to bet on promising crypto-focused entities. Through the new funding round, the Digital Currency Group and its subsidiaries will look to extend their position as a leader in the blockchain ecosystem.

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Will The SEC Approve A Bitcoin Futures ETF In 2021? Here Are The Implications

by NEWSBTC

Rumors are flying. The SEC could approve a Bitcoin Futures ETF before the year ends. What does this mean? And why a Bitcoin Futures ETF before one for the asset itself? That’s what we’re here to explore. It seems like the US Security And Exchange Commission will not give the go-ahead to the mythical Bitcoin ETF just yet… or ever, but a new option has a few companies salivating. 

Related Reading | Skybridge Capital Applies For Cryptocurrency ETF And Accumulates $100 Million For ALGO Fund

But first, why is the SEC hesitant about approving the Bitcoin ETF? Investopedia responds:

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“The reason is that bitcoin, the largest cryptocurrency in the world by market capitalization, remains largely unregulated. Additionally, the Securities and Exchange Commission (SEC) is hesitant to allow an ETF focused on the new and largely untested cryptocurrency market to make its way to the public.”

If that’s true, what makes us think that a Bitcoin Futures ETF is not only possible, but imminent? Well, last month The SEC Chairman Gary Gensler told the Aspen Security Forum:

“I anticipate that there will be filings with regard to exchange-traded funds (ETFs) under the Investment Company Act (’40 Act). When combined with the other federal securities laws, the ’40 Act provides significant investor protections.

Given these important protections, I look forward to the staff’s review of such filings, particularly if those are limited to these CME-traded Bitcoin futures.”

Is A Bitcoin Futures ETF What US Investors Want?

Since Gary Gensler sent such a clear signal, the financial world responded in unison. 

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“At least four asset managers have filed for ETFs that invest in bitcoin futures after Securities and Exchange Commission chair Gary Gensler earlier this month indicated that he could approve such funds. But investors may not want them in lieu of physically backed bitcoin ETFs, analysts have said.”

Who’s interested in ETFs, though? Well, according to Investopedia, “A bitcoin ETF mimics the price of the digital currency, allowing investors to buy into the ETF without trading bitcoin itself.” Some investors or groups simply can’t invest in bitcoin, the asset, because their own internal rules won’t allow them to. They can’t purchase bitcoin through a brokerage account. No financial institution backs it, so no one protects them. And, of course, there’s the feared volatility.

Bloomberg explains how Bitcoin fixes this:

“A Bitcoin ETF could help get around those restrictions since the format is more widely accepted. “There are all sorts of custody and regulatory hurdles for big financial institutions to jump through,” said Ross Mayfield, investment strategy analyst at Robert W. Baird & Co. “If it were offered in an ETF, it clears a lot of that up for financial institutions.”

However, it appears that the SEC won’t approve one any time soon. Why would they approve a Bitcoin Futures ETF instead? Bloomberg continues:

“For the SEC’s purposes, Bitcoin futures also offer an additional level of security because they are governed by the Chicago Mercantile Exchange and require investors to put down cash on margin to trade, as a form of collateral.”

BTCUSD price chart for 09/27/2021 - TradingView

BTCUSD price chart for 09/27/2021 - TradingView


BTC price chart 09/27/2021 on Coinbase | Source: BTC/USD on TradingView.com

Experts And Important Players Disagree

While some companies can’t wait for the Bitcoin Futures ETF to be available, others are less enthusiastic. One of those is Michael Sonnenshein, CEO of Grayscale Investments. His company is one of the many that applied for a Bitcoin ETF and are still waiting for approval. In a recent CNBC interview, he said:

“It would be shortsighted of the SEC to allow a futures-based product into the market before a spot product,” Sonnenshein told CNBC’s “Squawk Box” on Tuesday. “They really should be allowing both products into the market at the same time and let investors choose which way they want.” 

Related Reading | Did The SEC’s Gary Gensler Threaten Crypto And DeFi In The WaPo Interview?

Of course, he’s heavily invested in this outcome. His company’s Grayscale Bitcoin Trust is incredibly successful, but if they manage to turn it into an ETF the scale might go parabolic. However, he’s not the only one that thinks that way. In the Bloomberg article, another expert elaborated on the Bitcoin Futures ETF ‘s limitations:

“With futures-based products, you introduced additional cost, more complexity, you have futures contracts that have to be rolled,” said the ETF store’s Geraci. “It’s just a sub-optimal option for investors.”

In any case, the Bitcoin Futures ETF approval is just speculation. Gary Gensler said he looked forward to reading his staff’s review of the fillings, which is not a guarantee by any stretch of the imagination.

Featured Image by Markus Winkler from Pixabay - Charts by TradingView

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Grayscale Hires Former Alerian CEO Davi LaValle As Global Head of ETFs

by Blockchain News

Grayscale Investments has hired Davi LaValle, the former CEO of energy and infrastructure index provider Alerian, as its ETF chief.

Mr. LaValle will be the senior managing director and global head of ETFs at Grayscale Investments. He will lead efforts by Grayscale, which recognises itself as the world’s largest digital currency asset management firm, to convert its suits of products into exchange-traded funds.

In March, LaValle’s hires follow job listings posed by Grayscale, which suggested that the New York-based company was planning an ETF business. 

Before Lavelle served as the chief executive at Alerian energy infrastructure market intelligence company, he worked in several stock exchanges, helped develop best performing ETFs at the Nasdaq stock market, and chaired a division of State Street’s exchange-traded funds business as the head of the bank’s capital markets team.

ETF Applications Mushrooming

The new hire will help Grayscale Investments convert its GBTC into an ETF.

In April, the US investment company responsible for $34.5 billion in assets under management sighted the need to turn its Grayscale Bitcoin Fund into a Bitcoin Exchange-Traded Fund as soon as possible.

During that time, Grayscale confirmed its plan to re-apply with the U.S Securities and Exchange Commission (SEC) to offer an ETF after previous failed attempts to get approval.

The New York-based firm launched its Grayscale Bitcoin Trust in 2013. The investment vehicle has been the go-to option for investors who want Bitcoin exposure to their portfolios without directly purchasing the crypto asset.

Grayscale first applied for a Bitcoin ETF in 2016 but eventually withdrew its applications after determining that the regulatory environment could not authorise a Bitcoin ETF.

Last month, Grayscale revamped its ETF ambitions through a new deal with Bank of New York Mellon Corporation as its ETF services provider.

Other US firms include Fidelity Investments, Anthony Scaramucci-led SkyBridge Capital firm, WisdomTree Investments, Valkyrie Digital Assets, NYDIG asset management firm, and VanEck Associates Corp have applied. They are still waiting for approval from the US regulators to offer Bitcoin ETFs.

However, it is not known when the SEC will approve a crypto ETF in the US. But market participants believe that multiple Bitcoin ETF approvals in Canada this year may spur US regulators to approve such crypto ETFs.

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BNY Mellon Bank Tapped to Provide Grayscales with Bitcoin ETF Services

by Blockchain News

Grayscale Investments LLC announced Tuesday to select the BNY Mellon bank (The Bank Of New York Mellon Corporation) as its assets service provider for the Grayscale Bitcoin Trust. The development comes when the crypto firm plans to convert its Bitcoin fund into an Exchange-Traded Fund (ETF). 

Based on the partnership they reached, BNY Mellon bank would start handling accounting and administrative services for the Grayscale Bitcoin Trust (GBTC) starting from October 1. Grayscale will use BNY Mellon for ETF services upon the hoped-for conversion of its$21.5 billion GBTC, according to Bloomberg, citing a statement Tuesday.

Michael Sonnenshein, the CEO of Grayscale Investments, said that such roles are currently done in-house. “Our business has been undertaking any and all initiatives we possibly can to ready this product for an ETF conversion,” Sonnenshein said in an interview with Bloomberg. 

The crypto firm also said that Mellon bank would offer transfer agency and ETF services once the Bitcoin trust is converted into an ETF. Such a product would require various backend services in which the deal solicits the bank to offer such key functions for the crypto company.

The latest announcement by Grayscales comes just 24 hours after the firm got approval from the US SEC for its diversified crypto fund (Digital Large Cap fund), thus making the fund an SEC reporting company.

Grayscale Digital Large Cap Fund would now file its financial statements and other reports with the SEC, including compliances with all other obligations enshrined under the Securities Exchange Act. The announcement made the crypto firm a step closer towards commitments to convert its Bitcoin trust to America’s first Bitcoin ETF.

In recent months, BNY Mellon has also become actively involved in the crypto industry. In February, the bank started providing Bitcoin custody services to its clients.  

Meanwhile, nearly 40,000 Bitcoins are unlocking this week, which may impact the crypto market. An analyst commented if GBTC Unwinds would be Bullish or Bearish for Bitcoin. Ulrik K.Lykke, Executive Director of ARK36, said: 

“In theory, the unlocking of GBTC shares should not have any direct effect on the Bitcoin spot market. However, if all investors holding the currently locked-up shares rushed to exit their investment at the end of this lockup and started mass selling their shares, it would likely exert downward pressure on the BTC price.”

Crypto ETFs Facing Hurdles

Grayscale first applied for a Bitcoin ETF in 2016 but spent the rest of 2017 engaging in conversations with the SEC. The company eventually withdrew its application because it believed that the regulatory landscape for crypto assets had not advanced to a point where such products could be approved for the market.

But since the regulatory environment has changed, the crypto firm is once again making moves towards a Bitcoin ETF.

Grayscale is among many companies in the crypto market planning to get Bitcoin ETF approval from the US regulators. At least nine other firms have submitted applications, including Fidelity Investments, Galaxy Digital Holdings Ltd, etc. So far, the SEC has not approved any Bitcoin ETF in the US due to concerns about market manipulation and volatility associated with cryptocurrencies.

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Bitcoin’s key momentum metric hints at bullish divergence as BTC clings to $33K

by Cointelegraph

A recent run-down in the Bitcoin (BTC) market faces the prospects of exhaustion before confirming a full-fledged bearish breakdown, so reflects a classic momentum-based oscillator.

RSI forming higher lows

Dubbed as Relative Strength Index, or RSI, the indicator measures the speed as well as change of directional price movements. It operates within a set range of numbers—between 0 and 100. The close is RSI to 0, the weaker is the price momentum. Conversely, an RSI reading near 100 reflects a period of strong momentum.

The range also helps determine an asset’s buying and selling opportunity. In detail, an RSI reading below 30 means the asset is oversold, thus an attractive buy. Meanwhile, RSI above 70 shows an overbought asset, meaning its holders would eventually sell it to secure profits.

The RSI also enables traders to spot buying/selling opportunities based on divergences between the price and the momentum. For example, when price makes a new low but RSI makes a higher low, then it is considered a buying signal—a bullish divergence. Conversely, a Bearish RSI Divergence appears when price makes a new high but RSI makes a lower high.

So it appears, Bitcoin is confirming a bullish divergence.

Independent market analyst CryptoBirb spotted the price-momentum deviation on Bitcoin’s one-day chart. In there, the pseudonymous entity noted BTC/USD forming a sequence of lower lows around the same period its RSI climbed while forming higher lows.

Bitcoin price dips against a rising RSI. Source: TradingView.com, CryptoBirb

The statement appeared as the BTC/USD exchange rate corrected lower after forming a local top at $36,675 on June 29. However, as of the Friday London session, the pair was trading below $33,000. The RSI fell in tandem with the latest downside move and was near 42 at press time, a neutral-to-bullish area.

Numerous headwinds for Bitcoin

Downside sentiment in the Bitcoin market persisted due to a flurry of pessimistic events. That included a global crypto crackdown that started with a ban in China in May and spread to the UK, India, South Africa, and the United States.

For instance, the Financial Conduct Authority banned the world’s leading crypto exchange Binance from undertaking regulated activities in the U.K. Additionally, in India, Enforcement Directorate issued a show-cause notice to Binance’s subsidiary exchange, WazirX, for facilitating money laundering.  

More headwinds appeared from hints of hawkishness from the Federal Reserve. The U.S. central bank surprised Bitcoin investors with its sudden intention to control inflationary pressures with eventual interest rate hikes in 2023. BTC/USD dropped by more than 28% after the Fed’s big reveal but later recovered after finding credible support near $30,000.

Nonetheless, bulls kept failing at sustaining Bitcoin price uptrends above the $40,000-level. As a result, the cryptocurrency remains stuck inside the $30K-$40K range, showing no clear directional bias in the short term.

Bitcoin anticipates to retest its prevailing channel’s support trendline following recent pullback. Source: TradingView.com

Konstantin Anissimov, executive director at CEX.IO, also noted that accredited investors have started maintaining distance from Bitcoin over its concerning environmental impacts. He added that mainstream interest in the cryptocurrency will return once miners switch to alternative sustainable energy options.

“When the environmental concerns are no longer a worry, many institutional investors are likely to trust the digital currency again, and as such buy more,” Anissimov told Cointelegraph, adding:

Bitcoin has a near-term projection of $50,000 and a longer-term projection of $75,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.