DCG's Silbert Predicts 5-10% of Bitcoin Capital Rotates to Privacy Coins


#DigitalCurrencyGroup CEO Barry Silbert predicted Wednesday that 5-10% of $BTC holdings will migrate toward privacy-focused #cryptocurrencies over the coming years. The DCG co-founder characterized privacy coins as asymmetric opportunities resembling early Bitcoin's risk-reward profile.


Silbert spoke at Bitcoin Investor Week in New York, stating he remains bullish on $BTC as a core portfolio holding but prefers transformative projects offering 100x to 1,000x return potential. $ZEC and Bittensor could deliver 500x gains while Bitcoin cannot achieve such multiples without complete dollar collapse, he explained.


Grayscale launched the first institutional #Bitcoin vehicle in 2013 through the Grayscale Bitcoin Trust, which later converted to among the most actively traded spot exchange-traded funds. The subsidiary's history lends weight to Silbert's assessment of cryptocurrency market evolution.


The CEO acknowledged that Bitcoin's anonymous cash narrative no longer holds credibility in an era dominated by blockchain analytics firms like Chainalysis and Elliptic. He expressed skepticism that Bitcoin will ever incorporate #privacy features despite clear user demand for confidential digital money transactions.


Grayscale operates the Grayscale Zcash Trust initiated in 2017, which the firm seeks to convert into an #ETF product. DCG previously offered a vehicle for ZEN token before Horizon privacy chain transitioned to operating as a Base layer-3 network.


Silbert stated he feels increasingly comfortable discussing financial privacy with Paul Atkins leading the Securities and Exchange Commission as chairman. Privacy represents his current investment focus as he views confidential transactions as fundamental rights rather than optional features.

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February 12, 2026 at 1:07 AM
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