Grayscale CEO Michael Sonnenshein remarked that the financial industry is witnessing an unprecedented demand for Bitcoin ETFs, unlike anything seen before in the ETF realm.

During a CNBC interview on March 1, Sonnenshein shared his observations regarding the performance of spot Bitcoin ETFs and the enthusiastic response from the market following their recent introduction.

Sonnenshein highlighted the considerable investor interest triggered by the advent of spot Bitcoin ETFs, noting significant inflows and demand that surpasses the daily supply of bitcoin entering the market, thereby impacting its price. He emphasized that this demand spans across both retail and institutional investors.

Despite this apparent surge in demand, CNBC pointed out significant outflows from the Grayscale Bitcoin Trust (GBTC) over a continuous 30-day period.

Sonnenshein attributed GBTC's outflows to its longer tenure compared to newer funds, having entered the market with $30 billion in assets under management, unlike the recently introduced Newborn Nine ETFs, which started with no previous holders. He noted that Grayscale had anticipated these outflows due to the prolonged holding period of investors.

Sonnenshein also highlighted a "new wave of adoption" in the industry propelled by the ETF launches, suggesting that it's only a matter of time before substantial investment flows into Bitcoin, potentially driving it to new highs. He mentioned that there is approximately $40 trillion in advised wealth that has yet to gain exposure to Bitcoin but now has a pathway to do so through these ETFs.

Furthermore, traditional financial institutions are yielding to client demands and providing access to these ETFs, including Bank of America’s Merrill Lynch and Wells Fargo.

Additionally, with the Bitcoin halving looming, which will halve Bitcoin's supply in less than two months, Sonnenshein anticipates a significant influx of investors into the industry and increased adoption.

Sonnenshein also expressed confidence in the approval of spot Ethereum ETFs, stating that it's a matter of "when, not if," during a separate interview. Industry experts predict a 50% chance of SEC approval for ETH ETFs by the first application deadline this summer.