Pantera Capital CEO says that the Market Overreacted to SEC Decision
After the SEC’s decision to postpone the hearing on ETFs, the market responded with fear and the price of Bitcoin fell once again. Investors saw this decision to delay as a preemptive sign for what’s to come, which they fear that the SEC might just say no. However, Dan Morehead, Pantera Capital’s CEO, explained why he believes that this reaction was a result of the market ‘overreacting’.
He expressed his opinion on CNBC’s Fast Money and explained that the market often overreacts to pieces of news. This is because of the non-stop nature of the industry that worldwide investors keep making predictions on how a small piece of news can affect prices. Morehead believes that this new case is no different.
Morehead doesn’t except a Bitcoin ETF to reach the market anytime soon. He said,
I think the SEC has been very cautious with an ETF… I still think it will be quite a long time until an ETF is approved. Here’s a perspective, the last asset class to be approved for ETF certification was copper, and copper has been on Earth for 10,000 years and it just got approved in 2012. I think Bitcoin in ETFs still have quite a ways to go.
According to him, an ETF is not a millenium away, however, there is a lot of regulatory uncertainty around it to say it is really close. Concurrent with Pantera’s product line, he said that crypto hedge funds are the ideal option right now, as the industry is in its nascent stage.
He further added that instead of focusing on this ‘uninteresting’ piece of news, the market should focus on Intercontinental Exchange’s entry into the space. He concluded his time on the show by saying,
This is huge news… This will have a very profound impact over the next five or ten years for the markets and in my mind, that’s what people should be focused on.