Crypto Traders Irrational Over Bitcoin ETF News, Says Pantera Capital CEO
Dan Morehead, CEO of San Francisco-based blockchain investment fund Pantera Capital, is of the opinion that crypto traders are too fixated on the U.S. Securities and Exchange Commission’s (SEC) bitcoin ETF (exchange-traded fund) decisions. Instead, he urged the crypto community to acknowledge the positive developments in the ecosystem and focus on the bigger picture.
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Bitcoin ETFs Have Caused a Tizzy
Pantera Capital CEO Dan Morehead believes that crypto traders are losing their sense of proportion regarding the SEC’s recent decision to delay its ruling on the Winklevoss twins ETF plans. Over the years a number of Bitcoin ETF proposals have failed to gain approval or have seen their proposals postponed repeatedly.
On CNBC’s Fast Money, Pantera CEO Morehead said it was important to not lose sight of the forest for the trees, so to speak:
“The main thing to remember is that bitcoin is a very early-stage venture, but has real-time price feed, and that’s a unique thing. People get excited about the price and overreact.”
“Overreact” is certainly one way to put it. The world’s largest cryptocurrency bitcoin saw its market cap bleed off around $10 billion after the SEC just delayed its VanEck Bitcoin ETF decision.
Caution Doesn’t Mean Impossible
In his interview, Morehead argued crypto enthusiasts shouldn’t feel defeted over the SEC’s decisions and should instead focus on positive announcements such as NYSE operator Intercontinental Exchange Inc. having freshly announced its new crypto trading platform dubbed Bakkt. The platform will allow institutional and retail investors to trade digital currency against fiat and will benefit from ICE’s experience in facilitating trillions of dollars in daily commerce.
Plus, there’s no reason to think the Bitcoin ETFs aren’t coming, said Morehead, it just might take a while:
“The ETF rejection is the same story we’ve had for five years. The SEC has been very cautious with an ETF […] I still think it will be quite a long time until an ETF is approved. The last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years.”
The hedge fund manager Morehead wasn’t literally suggesting that a crypto ETF could take 10,000 years, rather that the SEC is in no rush on its end. He concluded in saying he believed the best way to currently offer bitcoin-related products to mainstream investors is through hedge funds and not ETFs.
In contrast, many still believe that approval of a Bitcoin ETF could set the stage for the next cryptoeconomy bull run, paving the way for increased institutional money to enter the crypto space.
How long until a crypto ETF materializes? Share your views in the comments section below.
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