Dan Morehead, the CEO of crypto hedge fund Pantera Capital, thinks investors are “overreacting” to the SEC’s latest announcement that it will postpone the decision on whether to allow the listing of the Cboe VanEck/SolidX exchange-traded fund (ETF) backed by Bitcoin (BTC) to September 30.
In a recent interview on CNBC’s Fast Money, Morehead shared his thoughts on the current state of bitcoin and the larger cryptocurrency market, which has been reeling since the SEC announcement.
The main thing to remember is that bitcoin is very early-stage venture, but has real-time price feed — and that’s a unique thing. People get excited about the price and overreact
Morehead went on to say that the same ETF story has been repeated over the last five years, and he doesn’t see the narrative changing anytime soon given how the SEC has treated other approvals in the past.
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.
While investors continue to panic over the SEC, Morehead sees last week’s announcement by Intercontinental Exchange, the parent of the NYSE, as far more significant. The announcement revealed the company is launching a new cryptocurrency exchange, named Bakkt, designed to bring digital assets to daily consumer use.
That’s huge news. That is going to be a very profound impact over the next five or 10 years for the markets, and, to my mind, that’s what people should be focused on.
Pantera revealed last month that its fund currently has a 5-year return of 10,136.15% net of fees and expenses. The firm notably made its first major investment in BTC when it was priced around $100 while giving a $5,000 price target.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.