It could be some time earlier than the Securities and Exchange Commission approves a bitcoin exchange-traded fund, however cryptocurrency hedge-fund supervisor Dan Morehead says traders are overreacting to the information of a delay.
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“I nonetheless assume it is going to be fairly a very long time till an ETF is permitted. The final asset class to be permitted for ETF certification was copper, and copper has been on earth for 10,000 years,” the Pantera Capital CEO stated Wednesday on CNBC’s “Fast Money.”
“The principle factor to recollect is that bitcoin may be very early-stage enterprise, however has real-time worth feed — and that is a novel factor. Folks get excited in regards to the worth and overreact,” he stated.
Bitcoin fell sharply on Wednesday after the SEC delayed a decision on a proposed bitcoin ETF, which might have been the primary of its variety. The transfer follows the SEC’s resolution final month to reject a second attempt by Cameron and Tyler Winklevoss, founders of crypto trade Gemini, to checklist shares of their very own ETF.
The SEC has additionally rejected a number of different makes an attempt to commerce bitcoin ETFs, citing issues about fraud and manipulation of bitcoin.
“The ETF rejection is similar story we have had for 5 years,” Morehead stated. “The SEC has been very cautious with an ETF.”
Morehead stated that as an alternative of panicking over the ETF information, traders ought to really feel optimistic about Bakkt, the Intercontinental Exchange’s cryptocurrency project with partners Microsoft and Starbucks that was introduced in early August.
“That is big information,” Morehead stated. “That’s going to be a really profound affect over the subsequent 5 or 10 years for the markets, and, to my thoughts, that is what folks ought to be targeted on.”
As for the tumbling worth of bitcoin, Morehead identified that the cryptocurrency remains to be up about 82 % 12 months over 12 months.
“It is all perspective,” he stated.
Bitcoin was final down 6.three % at $6,288.30, which nonetheless makes it about 82 % greater 12 months on 12 months, in response to Coindesk.