Pantera Capital CEO: A Bitcoin ETF is ‘Years Away’

Pantera Capital CEO Dan Morehead believes a Bitcoin-ETF approval is insignificant in comparison to Bakkt and Fidelity launching cryptocurrency trading platforms for institutional investors.


Too Early for a Bitcoin ETF, Says Pantera Capital CEO

Yesterday, Pantera Capital founder and CEO, Dan Morehead spoke with Messari director of business development and panel moderator Katherine Wu at Bloomberg’s Institutional Crypto Conference.

Pantera Capital has made media waves lately as the firm is one of the first blockchain investment firms and a recent statement to investors floating around Twitter showed the firm’s investment portfolio down 73% on their cryptocurrency investments.

While speaking about the future of cryptocurrency Morehead downplayed the urgency and importance of an exchange-traded fund (ETF) backed by Bitcoin 00.

Dan Morehead

When asked about whether the approval of a Bitcoin ETF and the belief that this would bring about a strong trend reversal held merit, Morehead said, “I think an ETF is years away.”

He explains 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.”

Investors, Curb Your Enthusiasm!

According to Morehead, “an EFT is not news” and the fact that everyone is hinging the future success of cryptocurrency on its approval is a bit naive. Morehead poetically opined that:

The SEC doesn’t want widows and orphans buying Bitcoin ETFs. They don’t even know if Bitcoin is officially a security.

Regarding recent Bitcoin ETF postponements and rejections, Morehead suggested that it is much too early for market makers to seek approval for such an instrument as the cryptocurrency market is still in its infancy and that profit savvy investor “overreacted.”

Basically, the CEO is suggesting that cryptocurrency investors pump the brakes and play the long game as the real noteworthy news events are “the Fidelity and the Bakkt thing.”

Fidelity

Even though Bakkt is scheduled to launch next month and Fidelity just launched their crypto platform for institutional investments, Morehead says,

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 echoes former Goldman Sachs partner, Mike Novogratz, who puts the start of real institutional flows into cryptocurrencies for the same time period, namely Q1 and Q2 2019.

Bitcoinist also reported in July that the final decision for the SEC to rule on the SolidX/VanEck Bitcoin ETF is expected sometime in February or March 2019, according to legal expert, Jake Chervinsky.

Do you think the SEC will approve a Bitcoin-ETF anytime soon? Share your thoughts in the comments below! 


Images courtesy of Shutterstock

Next Bitcoin Bull Run Will See Crypto Market Rise ‘10x’: Pantera CIO

Joey Krug Pantera Capital
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The co-chief investment officer of one the cryptocurrency industry’s largest investment firms said that he expects the next bitcoin bull run to carry the cryptocurrency market cap 1,000 percent above its current valuation.

Pantera Capital’s Joey Krug made this prediction during an interview with Bloomberg, forecasting that the next upswing could propel the cryptocurrency market cap to more than $2 trillion.

“If you look at that next bull run, I think the crypto space overall could hit 10x from here.”

Noting that in previous market cycles the news that major financial industry players like Fidelity Investments and Intercontinental Exchange (ICE) were entering the cryptocurrency space would have sparked a surge in speculative investments, Krug said that he believes the market is currently waiting on concrete adoption to catalyze a bull run.

bitcoin price chartBTC/USD | Coinbase

For this to happen, he continued, cryptocurrency networks will need to achieve increased scalability, as the current state of cryptocurrency blockchain development is akin to the internet before dial-up.

He commented:

“If you look at the internet, it’s easy to say, ‘Well, you just create an app, get some users, and then you solve the scalability problems.’ But these are all markets, and so if you don’t have scalability, you don’t have market makers, and so you don’t have liquidity.”

As CCN has reported, two of those innovations for Bitcoin, in particular, include the Lightning and Liquid networks. The Lightning Network (LN), which is currently in beta, is a second-layer protocol that operates on top of Bitcoin. Using the network’s built-in scripting language, users can move funds “off-chain” into LN payment channels, where transactions do not require miner validation and can consequently be processed instantly at virtually no cost.

The Liquid Network, on the other hand, is a federated Bitcoin sidechain developed by blockchain startup Blockstream and targeted at cryptocurrency exchanges, financial institutions, and other bitcoin power users who desire to move large amounts of bitcoin more quickly and privately than they can across the main blockchain.

These technologies — as well as ones on other blockchains — are not yet ready for primetime, but Krug said that he expects some cryptocurrency networks to achieve Visa/Mastercard scale within the next couple of years, though that does not necessarily mean the bear market will endure for that long.

In the meantime, he said that he believes the cryptocurrency market has hit a bottom and will remain range-bound until the next catalyst arrives.

Featured Image from Blockchain at Berkeley/YouTube. Charts from TradingView.

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The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTC

The Daily

In today’s edition of The Daily, we look at a group of major cryptocurrency venture funds teaming up with a new startup hub, some good news for Israeli investors, a new platform launched in open beta and an FX broker that is adding bitcoin cash (BCH)/bitcoin core (BTC) to its platform, as well as 15 other trading instruments.

Also Read: Binance Exchange to Replace Token Listing Fees With Donations

New Startup Hub to Support
Privacy-Focused Projects

Oasis Labs has announced a new partnership with a16zcrypto, Accel, Binance Labs, Pantera Capital and Polychain Capital to launch a program to accelerate the development of privacy-focused projects. The Oasis Startup Hub will provide developers with guidance from top venture capital investors, dedicated technical support from its engineers and other additional benefits. The team said that several companies have already joined the program at launch, developing applications that range from decentralized credit scoring to distributed data marketplaces for artificial intelligence.

“Oasis has impressed us with technical acumen and business leadership, and working closely with their team on this project reflects the depth of our commitment,” said Paul Veradittakit, partner at Pantera Capital. “The Oasis Startup Hub offers a unique opportunity to share expertise and relationships to solve key issues around blockchain scalability and privacy, and move toward widespread adoption.”

Israel May Lighten Tax Burden on Crypto Traders

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTCSpeaking at an event in Tel Aviv, the deputy director general of the Israel Tax Authority said that the agency will not insist on calculating the taxation of crypto by FIFO (first-in, first-out), which can simplify reporting for investors and may result in lower tax assessments.

CPA Roland Am-Shalem, the deputy director general of the agency, clarified that the exact tax calculation, which relates to profits explicitly accrued for each cryptocurrency, would be acceptable to the Israeli authorities. Asked whether the tax could be reported by a non-FIFO method, he replied: “Yes, we will not insist on FIFO, subject to the fact that you can identify the currencies and be consistent with yourself.”

Jeremy Dahan, co-founder of Hello Group Software, which offers a diamonds-backed stablecoin, commented: “The significance of the announcement is that the assessments are much lower than in the FIFO method, so even those who submitted reports according to this method will be able to submit revised reports that may reduce the assessment.”

Gidi Bar Zakai, a former deputy director general of the Israel Tax Authority, added that “the acknowledgment by the tax authority in calculating accurate profits in digital currencies will result in a true tax calculation, which will lead to increased collection and profit of hundreds of millions of shekels for the state over the years.”

Roboforex Adds BCH/BTC and
15 Other New Instruments

Roboforex, a financial broker licensed by the International Financial Services Commission of Belize (IFSC), has expanded the range of crypto instruments available for trading through its R Trader multi-asset platform. It has added 16  new trading instruments to the platform, including BCH/BTC, BTG/BTC, BTG/USD, EOS/BTC, ETC/BTC, ETC/USD, GNT/USD, IOTA/BTC, IOTA/USD, NEO/BTC, NEO/USD, OMG/BTC, OMG/USD, QTUM/USD, XMR/BTC and XMR/USD. In total, 26 crypto instruments are available for trading on the platform at the moment, with leverage of up to 50:1.

“Until recently, one could trade of a large set of different cryptocurrencies only at exchanges, but now traders have new options,” said Kiryl Kirychenka, head of R Trader. “If we’re talking about convenience of products and services, trading conditions and security, brokers’ offers are competitive to crypto exchanges, but in many aspects they are even better.”

Coinmetro Launches Professional
Platform in Open Beta

The Daily: Crypto Funds Team up With New Startup Hub, FX Broker Adds BCH/BTCCoinmetro, which secured two licenses for crypto trading activities from the Estonian government earlier this year, has launched an ongoing open beta of its new trading user interface, featuring multiple order and execution types, as well as charting tools and trade history with rapid order processing. Developed for experienced and professional traders, the platform joins the two interfaces that are already available in beta and offer a more basic experience. The full launch of the platform, expected later this year, will feature multiple cryptocurrencies (BTC, ETH, XRP, LTC and BCH) as well as fiat currencies (EUR, USD, JPY, GBP).

“The tiered layout of the CoinMetro exchange, all the way from our ‘Simple Exchange’ right up to our new comprehensive trading platform, has been developed with users in mind, making it straightforward to trade crypto, no matter what their experience level is,” said CEO Kevin Murcko.

“We’ve streamlined the investing process for beginners, but we’re also offering the rich functionality that professional and experienced currency traders will expect. We’re grateful for all the support and feedback we’ve received so far during our open beta period. Thousands of users have now tested out the platform, and we’re keen to implement many of their suggestions into our final product.”

What do you think about today’s news tidbits? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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