Delays from the SEC Causes Commotion and Concern Over Crypto Industry, But Investors Are “Overreacting”
The Securities and Exchange Commission keeps pushing back regarding a Bitcoin exchange-traded fund, which has been concerning many investors that have both small and big stakes in the industry. However, Dan Morehead, who is a manager of a hedge fund, believes that investors are putting themselves under unnecessary stress, saying that they are overreacting to the news.
In a statement during CNBC’s Fast Money, Morehead said, “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.” However, 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.”
After the decision to delay the final ruling on a bitcoin ETF to be established, Bitcoin suffered from a noticeable drop. This decision seems to remind consumers of the recent ruling that the entity had for Gemini, the crypto exchange of Cameron and Tyler Winklevoss. However, rather than delaying their ruling, they completely denied it, leaving some consumers to worry that the same fate will be coming to the bitcoin ETF. There is already been many others that have lost their chance at an ETF. Still, Morehead said, “The ETF rejection is the same story we’ve had for five years. The SEC has been very cautious with an ETF.”
Morehead managed to provide some advice for investors and experts in the fields. He encouraged them to move away from the frustration of these denials, and to focus instead on Bakkt. This cryptocurrency project is a collaboration between the Intercontinental Exchange, Microsoft, and Starbucks, and was only announced earlier this month.
Commenting on these changes, Morehead said,
“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.” With the drop in Bitcoin value, Morehead was sure to point out that the value was still up by 82%, saying that “it’s all perspective.”