Grayscale Seeks Expansion Into Euro Crypto Market, Meets Local Partners

A recent Bloomberg report has revealed that Grayscale Investments seeks to start offering its services to the wider European crypto market. According to the firm’s CEO, Michael Sonnenshein, Grayscale has already started discussing with local partners.

Grayscale Already Has A Detailed Plan For Entering Europe’s Crypto Space – Grayscale CEO

However, Sonnenshein refused to reveal whether the digital asset management firm has chosen the nations or exchanges it will be targeting. He stated that he would reveal further details on the matter when he delivered his speech at the Consensus 2022 event. It remains to be seen whether Grayscale can compete favorably with other top ETPs in Europe. 

However, Sonnenshein quickly stated that “we are always known to have a thoughtful and systematic approach to owning financial centers and hubs. We will use the same approach in launching out to the European market. Through our research, we have identified the different investor behaviors, attitudes, and regulations that would allow us to focus on our target audience.”

Competition is becoming fiercer in Europe’s crypto market with the launch of many ETPs around Europe, especially in Germany and Switzerland. Multiple data revealed that there are up to 74 crypto-based ETPs across Europe as of last month, with their estimated AUM being $7.5B.

Will The SEC Approve Grayscale’s Spot BTC ETF Proposal?

As Grayscale is seeking to expand its operation across Europe, it seeks to convert its popular Grayscale BTC (GBTC) into an ETF in the US. However, the US financial regulator, the SEC, hasn’t granted its request yet. Despite approving four BTC futures ETFs, the SEC is yet to approve any ETF with a direct crypto exposure.

A Bloomberg intelligence report released last month predicted that if the US SEC should approve a spot BTC ETF, the crypto fund industry would likely be a $125b industry in the next six years. Nevertheless, Sonnenshein said he strongly believes that the SEC would eventually approve a BTC futures ETF no matter how long it takes them.

Last October, Grayscale applied with the SEC to convert its GBTC to a spot BTC ETF. Even though the SEC stated that it would give a final verdict on the application two months ago, it postponed its verdict till early July 2022. While the SEC continues to delay approving a spot crypto ETF, many have been approved in many European nations.

The US crypto space continues to demand a spot BTC ETF. A recent survey by BitWise and ETF trends revealed that 83% of financial advisors would prefer to invest in a spot BTC ETF instead of other futures-based options. Even though Grayscale Investments owns Coindesk, it is one of the arms of the digital currency group. Grayscale hasn’t yet revealed whether it would launch a doge futures ETF even though it currently runs an eth futures ETF and the popular GBTC.

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