August has not been very welcoming for Bitcoin, the price decline is further exacerbated with SEC’s decision to delay yet another BTC ETF. However, Dan Morehead, the CEO of Pantera Capital, expresses that investors sharp reaction is an overreaction.
The Hedge fund manager spoke to CNBC on Wednesday and stated that the current price slide is due to the traders exaggerated reaction to the SEC’s refusal to approve a BTC ETF.
“I still think it will be quite a long time until an ETF is approved. The last asset class to be approved for ETF certification was copper, and copper has been on earth for 10,000 years.” he added “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,”
The Securities and Exchange Commission, SEC postponed their decision regarding VanEck/SolidX BTC ETF and concurrently the prices of Bitcoin sharply fell on Wednesday. Though Bitcoin managed a mini-recovery yesterday, the top-ranked cryptocurrency is still at its lowest level in almost a month.
The SEC has been rejecting or postponing several proposals to trade bitcoin ETFs citing concerns about fraud and manipulation of bitcoin. Just last month the second attempt by Winklevoss Twins to list shares of their own ETF was also rejected. Morehead stated regarding this situation:
“The ETF rejection is the same story we’ve had for five years. The SEC has been very cautious with an ETF.”
Morehead suggested investors shouldn’t have panicked over the delayed ETF, instead, they should concentrate on the greener side of the grass i.e. Bakkt. Announced in early August, Bakkt is an initiative of the Intercontinental Exchange in collaboration with Microsoft and Starbucks. He stated:
“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.”
Moreover, Morehead points out that despite the fall, the cryptocurrency is still 82 percent higher. He said:
“It’s all perspective,”
The Pantera chief definitely has a point, according to Coindesk, Bitcoin was last down 6.3 percent at $6,288.30, which still makes it about 82 percent higher year on year.
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