Pantera Capital’s Morehead Says Bitcoin Investors Have Overreacted to ETF News




During an appearance on CNBC’s Fast Money on Wednesday, Pantera Capital CEO Dan Morehead suggested that Bitcoin investors have been too focused on attempts to gain approval for a Bitcoin ETF. Morehead said that those investors have been overreacting to news that the SEC has postponed a decision on the proposed VanEck and SolidX ETF. He also predicted that it may be a “long time until an ETF is approved.”

According to Morehead:

"I think the main thing to remember is that bitcoin is a very early-stage venture but has a real-time price feed - and that's a unique thing. People get really excited about the price and overreact, I think, to announcements. There’s been a couple of big things coming out in the last week and the ETF rejection is the same story we’ve had for five years. I think the SEC has been very cautious with an ETF.”

Morehead also noted that current perceptions of a listless Bitcoin market are largely based on perspective and reminded viewers that Bitcoin prices are up “82 percent year-on-year, so it’s still doing very, very well.” He then suggested that Bitcoin “needs to be done as hedge funds first” since it is an “early-stage venture-type security or asset.” Morehead called that the “best way to go,” before offering his prediction about the timeframe for an ETF approval:

"I think it’s going to be quite a long time until an ETF is approved. And here’s a perspective: the last asset class to get approved for ETF certification was copper, and copper has been on earth for 10,000 years – and it just got approved in 2012 after a very long multi-year process. I think ETFs and Bitcoin still have quite a ways to go.”

When asked about what does get him excited, Morehead pointed to the recent announcement that the New York Stock Exchange’s parent company, Intercontinental Exchange, is launching a new cryptocurrency exchange called Bakkt. Morehead called that “huge news” and predicted that it would have a major impact on the cryptocurrency markets in the next five to ten years.

“To my mind, that's what people should be focused on."

Author: Ken Chase

Freelance writer whose interests include topics ranging from technology and finance to politics, fitness, and all things canine. Aspiring polymath, semi-professional skeptic, and passionate advocate for the judicious use of the Oxford comma.

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