Crypto Crash Not Slowing Crypto Investors, Says Grayscale CEO

Mike Sonnenshein, CEO of crypto asset management firm Grayscale, says despite significant losses in crypto, the recent sell-off has "not deterred" crypto investors.

Halfway through 2022, the volatility and valuation losses across cryptocurrency exchanges, digital wallets, and the crypto sector has been nothing short of breathtaking. Especially, when you consider that according to CoinMarketCap today, the total crypto market market is valued at just $951.26 billion -- marking a nearly 70% drop of more than $2 trillion from its all-time high set just seven months ago.

And yet hope seems to spring eternal for some.

Grayscale CEO says crypto investors have a long-term horizon

In a recent broadcast interview, Mike Sonnenshein, CEO of cryptocurrency asset management firm Grayscale, told the interviewers that the true believers of established crypto projects such as Bitcoin and Ethereum, are not shaken by short-term price action.

"If you look out over a longer time horizon, you will see crypto being uncorrelated to other asset classes, although often times it is scrutinized because we do only have the last 10-plus years of trading history to really examine," said Sonnenshein.

He even went as far as to say that Grayscale clients are generally optimistic about underlying fundamentals and expanding use cases for blockchain and cryptocurrencies in particular.

"The recent sell-off, though, from what we're hearing from investors, has not deterred them. If anything, they're looking at it opportunistically and a pullback like this is nothing new in the crypto space," Sonnenshein said.

Sonnenshein also noted that the downturn in the crypto market is not isolated to digital assets, as it's a reflection of macroeconomic conditions affecting all asset classes across the board.

Only time will tell whether the optimistic, forward-thinking crypto investors are right to look toward a brighter crypto future, or whether the crypto winter will endure.