Pantera Capital CEO Says Bitcoin ETF ‘Is Years Away’ But Bakkt, ErisX & Fidelity Will Push Adoption
CEO of Pantera Capital: Too Early for a Bitcoin ETF; It’s a Year Away
During the Bloomberg’s Institutional Crypto conference held in New York City, the CEO of Pantera Capital Dan Morehead said that it’s too early for a bitcoin ETF, and that the possibility of having one is a year from now.
According to Morehead, his stance is purely based from his experience. The discussion heated up following some political moves made by the U.S. Securities and Exchange Commission among investors. Specifically, the appointment and declaration of Hester Peirce against the verdict of denying a Bitcoin ETF filed by the Winklevoss brothers inspired the interests of many industry analysts.
Morehead noted that ‘an ETF is not news’, and that it’s a bit naïve that everyone is talking about the future success of digital assets based on its approval. He poetically stated that:
“The SEC doesn’t want widows and orphans buying Bitcoin ETFs. They don’t even know if Bitcoin is officially a security.”
Bitcoin ETF Could Be Delayed by Lack of Institutional Clients
According to Morehead, despite the issues of regulation, cryptocurrencies also face another major challenge – ‘institutional inertia’. These clients stimulate growth in every market to a point that the regulator takes special interest in such business.
Elaborating on his view on this, Morehead noted that:
“I’d say the biggest gaping factor is simply institutional inertia, right? Like most of the people in this room don’t have to do anything with Bitcoin today… The blockchain space is super viral. Like, once you own a tiny bit of it, then you start buying a lot of it, and you get all your friends to buy it, and you get your colleagues and peers in your industry to buy it…”
Approval of an ETF is a Complex and Bureaucratic Process
According to the CEO of Pantera Capital, the authorization of an ETF is not only a complex process, but also a bureaucratic one. As per his views, the cryptocurrency ecosystem is still in its infancy to think about having a successful bitcoin ETF. Expounding on this, Morehead said that:
“Very few people know that the last asset class that was certified for an ETF was copper. It took three years, even though copper has been around for 8,000 years… So, I think an ETF is years away.”
When it comes to Bakkt and Fidelity Investments, two firms that have made headlines recently for making steps to attract institutional investors to crypto, Morehead noted that they will offer ‘very good institutional custody/clearing solution’. Explaining further on this, he noted that:
“When we look back at this five years from now, I think those are going to be the events that spurred an enormous amount of capital into the industry.”
Morehead on Bitcoin and Crypto Markets
Dan Morehead is a well-known cryptocurrency advocate, who on various occasions has shown bullish position on bitcoin and the cryptocurrency market in general. Several months ago when bitcoin prices were dropping significantly, he was optimistic that bitcoin was actually ‘screaming buy.’