Grayscale Investments has publicly filed for an initial public offering (IPO), becoming the latest cryptocurrency-linked company to test U.S. public markets under what company executives view as a friendlier regulatory climate.
Zach Pandl, the firm’s Head of Research, in a media interview, recently spoke about market volatility, the future of blockchain-based assets, and how cryptocurrencies fit into modern portfolios.
Opening the conversation, Pandl characterized the recent pullback in Bitcoin and digital assets as part of a broader repricing in high-growth, speculative technology sectors.
“What I see is a repricing of technology related assets across the board,” he said, noting similar moves in “air name satellite companies, quantum computing stocks,” and other frontier technologies. Bitcoin’s decline, he argued, has been driven by macroeconomic concerns rather than crypto-specific issues.
Pandl highlighted that while the Nasdaq is down about 6% from all-time highs, Bitcoin has fallen much more sharply, along with other early-stage technologies. “Bitcoin is a major asset, a $2 trillion asset,” he said, but added that much of the broader crypto category remains early-stage and highly volatile.
When asked to define what crypto actually is—whether a currency, commodity, or safe haven—Pandl called it an “alternative asset class.”
“In crypto is a $4 trillion alternative asset class today,” he said. He likened crypto to other alternative investments such as hedge funds, private equity, or infrastructure, though with higher volatility.
For long-term investors seeking diversification, he argued, crypto’s historically low correlation with public equities makes it attractive. “It’s been a great diversifier over time,” he said.
Grayscale, one of the earliest crypto fund managers, has long pushed for regulated investment vehicles and won a landmark legal victory that ultimately opened the door to spot Bitcoin ETFs.
Pandl said the rise of Bitcoin, Ether, and other crypto ETFs has been “absolutely for better,” emphasizing that funds allow investors to access crypto inside retirement accounts and with simplified tax treatment.
Pandl also responded to criticism that ETFs contradict crypto’s decentralized ethos by concentrating holdings among large institutions like BlackRock. He countered, “The premise is that bitcoin mining… is decentralized… not who is holding the asset.” He likened it to gold, which remains decentralized even though central banks store it in centralized vaults.
When asked why investors should not simply buy crypto directly, Pandl acknowledged that self-custody is a core part of crypto culture but argued there remains a role for intermediaries.
“There will be a lasting role for certain types of intermediaries,” he said, pointing to taxes, estate planning, and retirement accounts as areas where funds add convenience. Still, he encouraged experienced cryptocurrency users to continue self-custody if they prefer.
The interview’s hosts questioned whether cryptocurrencies can gain economic value without broad adoption for payments, noting that most daily transactions continue to use traditional fiat currency.
Pandl argued that stablecoins—crypto tokens pegged to assets like the U.S. dollar—will drive widespread payment adoption. He referenced the July passage of the “Genius Act,” which established a regulatory framework for stablecoins in the U.S.
Over time, he said, people will see stablecoins on corporate balance sheets and used as collateral on major derivatives exchanges. He emphasized that high-quality stablecoins are backed “one for one” by U.S. Treasuries.
The discussion also touched on long-running confusion over how cryptocurrencies should be classified under U.S. law—whether as securities or commodities. Pandl said the Senate is working on legislation that should clarify the issue.
“Bitcoin is a commodity,” he said, likening it to digital gold. But he added that many other tokens resemble equity-like claims. In the future, he expects large corporations to issue tokens as part of their capital structure.
The hosts asked how political shifts have affected crypto markets, with some pointing to the Trump administration’s friendlier posture. Pandl pushed back on the idea that political leadership is the primary driver.
“It’s not a crypto friendly administration. It’s a crypto friendly nation or crypto friendly voter base,” he said. He noted that Democrats and Republicans have both supported key crypto legislation. “In our own survey data, slightly more Democrats hold crypto assets than Republicans,” he added.
Pandl declined to comment on how current market volatility could affect the timing of Grayscale’s IPO filing, citing restrictions during the company’s quiet period. However, he reiterated confidence in the long-term prospects of blockchain technology.
“I’m incredibly enthusiastic about where this technology and where this asset class is going,” he said. In his view, a decade from now, crypto and blockchain applications “will be everywhere in [the] financial system.”
When asked when more details on the IPO will be available, Pandl replied, “TBD.”