Encryption hedge fund manager says that investors "overreact" to Bitcoin news
"I still think it will be a long time until an ETF is approved. The last asset class that was approved for ETF certification was copper, and copper has been in the ground for 10,000 years, "said Pantera Capital CEO on Wednesday at CNBC.
"The most important thing to remember is that Bitcoin is at a very early stage, but it has a real-time price feed, and that's something unique. People are excited about the price and react in an exaggerated way, "he said.
Bitcoin fell sharply on Wednesday after the SEC postponed a decision on a proposed Bitcoin ETF, which would have been the first of its kind. The move follows the SEC's decision last month to reject a second attempt by Cameron and Tyler Winklevoss, founders of the Gemini cipher exchange, to quote shares of their own ETF.
The SEC has also rejected several other attempts to exchange bitcoins ETFs, citing concerns about Bitcoin fraud and manipulation.
"The rejection of the ETF is the same story we've had for five years," Morehead said. "The SEC has been very cautious with an ETF."
Morehead said that instead of panicking about the ETF news, investors should be optimistic about Bakkt, the Intercontinental Exchange cryptocurrency project with the Microsoft and Starbucks partners that was announced in early August.
"It's great news," said Morehead. "That's going to be a very profound impact in the next five or ten years for the markets, and, in my opinion, that's what people should be focusing on."
As for the price of the fall of Bitcoin, Morehead said that the cryptocurrency continues to rise 82 percent year after year.
"It's a matter of perspective," he said.
Bitcoin was down 6.3 percent at $ 6,288.30, which is still 82 percent higher year-over-year, according to CoinDesk.
Although there is still an important gap to overcome, Bitcoin is already positioned and recognized as an asset with which we can easily invest, as well as acquire products that are part of daily life.
Source: CNBC
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