Dan Morehead, CEO of Pantera Capital, which recently celebrated it’s 5th year anniversary with a lifetime returns of about 10,000%, believes that bitcoin investors are getting a little too excited from the teetering graphs observed these past weeks and are selling in the market that’s already gasping for breath.
Dan shared these thoughts on a post-market TV show this Wednesday, skeptic of the probability of an ETF approval adding that the last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years.
While commenting on the sharp surges and declines in Bitcoin prices Dan Morehead said:
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.
Bitcoin continues fluctuating wide lengths as more and more countries struggle to regulate and allow this technology to enter the stream.
In these past weeks, bitcoin continues downward flight primarily because of growing realization among retail investors that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve a bitcoin ETF this year.
Morehead added that investors are also ignoring an announcement that could prove to be just as important as ETF decline: the world’s largest stock exchange operator is launching a crypto-focused subsidiary.
Created by Intercontinental Exchange (ICE), the operator of the New York Stock Exchange (NYSE), Bakkt has already inked partnerships with Microsoft and Starbucks to develop ways to take cryptoassets mainstream. Additionally, the firm will offer institutional investors a physically-settled bitcoin futures product, providing them with access to a regulated cryptocurrency custodian.
“Bakkt is designed to serve as a scalable on-ramp for institutional, merchant, and consumer participation in digital assets by promoting greater efficiency, security, and utility,” said Kelly Loeffler, ICE’s head of digital assets, who will serve as CEO of Bakkt, in the press release announcing the launch. “We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.”
Morehead expressed his jubilation on the development by asserting it to be the news investors should be focused on.
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.
Although over $9 billion were wiped off bitcoin’s value after SEC postponed key decision on a cryptocurrency ETF just this Wednesday, Morehead was optimistic about bitcoin and it’s future, pointing out that the cryptocurrency is still up about 82 percent year over year.