According to Blockworks, Grayscale Investments, a leading crypto asset manager, has been receiving inquiries related to mergers and acquisitions following its high-profile legal victory against the Securities and Exchange Commission (SEC) last year. Grayscale CEO Michael Sonnenshein stated in an interview with CNBC that the company is open to considering deals and has been approached by people interested in strategic partnerships.
Grayscale is a significant player in the crypto space, with approximately $23 billion of assets under management in its Bitcoin Trust ETF (GBTC) alone. However, GBTC's asset base has recently decreased, while more funds have been directed towards lower-cost spot bitcoin ETFs by BlackRock, Fidelity, and others. Over the last six weeks, GBTC has experienced about $7.3 billion in net outflows, while the nine other spot bitcoin ETFs have collectively seen net inflows of around $12.6 billion.
Sonnenshein mentioned that the broader investment community took notice of Grayscale's court victory over the SEC in August. The DC Circuit Court of Appeals ruled that the SEC's decision to approve bitcoin futures funds but not Grayscale's proposed conversion of its Bitcoin Trust (GBTC) was arbitrary and capricious. The SEC ultimately approved spot bitcoin ETFs on January 10, following the court's decision on the Grayscale matter.