As the founder of the first U.S. cryptocurrency hedge fund, Dan Morehead, the Pantera Capital CEO said that he has a simple message for bitcoin investors selling into a market that has already experienced a 67 percent decline from its all-time high: stop overreacting.
He stated,“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,” said Morehead, whose investment firm has recorded a lifetime return of about 10,000 percent.
The bitcoin price has endured a decline over the past several weeks, with analysts primarily attributing the change in the market to the growing realization among retail investors that the U.S. Securities and Exchange Commission (SEC) is unlikely to approve a bitcoin ETF this year.
Morehead said that this hesitancy on the part of the SEC to approve a bitcoin ETF should not have come as a surprise and that investors should prepare to wait “quite longer” if they hope to see one of these products trading on a regulated stock exchange.
He stated that,“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 ETF rejection is the same story we’ve had for five years,” he added. “The SEC has been very cautious with an ETF.”