Grayscale Investments CEO Michael Sonnenshein told Bloomberg that the digital asset management firm has seen increased crypto investments from pension funds and endowments, driving digital asset growth and acceptance.
Grayscaleâ€™s 10 funds hold investorâ€™s cryptocurrency shares in an unredeemable capacity, which can only be sold in the secondary market. This increases its scarcity and drives up its price, Sonnenshein said, per Bloomberg.
â€œThis is a verifiable scarce asset and so when there are mechanisms that are removing them from circulation, thatâ€™s inherently making it an even scarcer asset,â€� said Sonnenshein, according to Bloomberg.
Grayscaleâ€™s funds manage $25 billion in digital assets, a dramatic increase from the $2 billion held a year ago, the report stated.
In other news, a bar owner in New York has put his two Hellâ€™s Kitchen establishments up for sale â€” in exchange for cryptocurrency, New York Post reported.
Patrick Hughes is asking for 25 Bitcoins or 800 Ethereum tokens for Hellcat Annieâ€™s and Scruffy Duffyâ€™s. The deal, equivalent to about $875,000, would be the first restaurant sale in the U.S. to be paid for completely in cryptocurrency.
â€œIâ€™m not aware of any other bars or restaurants that have been sold for crypto only,â€� Charles Cascarilla, CEO of Paxos Trust Company, told the Post. â€œBut more and more people look at crypto as a monetary instrument. Weâ€™re really at a tipping point of its acceptance.â€�
Hughes said he sees cryptocurrency as a viable alternative to the dollar, owing to its digital, decentralized nature.
â€œCrypto is on fire, itâ€™s a hot currency,â€� said Hughes, 56, according to the Post. â€œ… The next crisis, you wonâ€™t have to run out and buy toilet paper. You can just use your dollars instead.â€�
Meanwhile, bitcoin rose to a new high on Friday, hitting $41,530, reported Reuters.
â€œViolentâ€� inflationary market price movements have helped push bitcoinâ€™s recent rally, said Reuters, citing Bank of America investment strategists, who also cautioned its bubble potential, saying it â€œblows-the-doors-off prior bubblesâ€� of gold in the 1970s and the dotcom bubble in the 1990s.
As of 6:08 p.m. Eastern time on Sunday (Jan. 10) bitcoin sat at $38,398.137.