since MMA heavily involves grappling, that being actual wrestling, I'd say this is erroneous as well.
The grappling has nothing to do with it, its how people view it.
Wrestling is viewed as fake, so is avoided by those who do not consider it a sport, whereas MMA is real, like boxing, and appeals to a very similar crowd.
While wrestling fans are very likely to become MMA fans, MMA fans are not so likely to become wrestling fans.