About $70 billion is traded in the Bitcoin (BTC) market every day which means the market is too big for a single player to handle, crypto hedge fund Pantera Capitalsaid Dan Morehead CEO, explaining his company’s strategy of focusing on investing in altcoins.
The argument that the bitcoin price is subject to manipulation is one that is often mentioned by the US Securities and Exchange Commission (SEC) as the reason it doesn’t allow cash bitcoin exchange-traded funds (AND F) to be listed in the United States.
According to Morehead, however, the argument is invalid due to the massive size of the bitcoin market.
“There’s $70 billion a day in bitcoin trading, there’s nobody big enough to manipulate that market. And there’s all kinds of other crazy stuff – like GameStop — that can be manipulated,” Morehead said during a live-streamed panel discussion Tuesday organized by the Financial Times.
He added that there was – in his view – no reason why crypto and blockchain technology could not simply be considered by regulators and investors as “a normal asset class like everything else. “.
“There is massive trading and incredible price discovery,” Morehead said of the broader crypto market.
Meanwhile, Morehead, who is known as an investor in many small altcoin and crypto projects, also discussed why institutions should embrace altcoin investing rather than just bitcoin.
“There is so much creativity going on now. There are 150 projects that are liquid enough to trade and are really important. Investors really should be exposed to a wider range of things,” Morehead said, noting that he doesn’t think BTC on its own can serve as an effective proxy for the entire crypto market.
In the same discussion, Blair Halliday, the UK regional manager at Crypto Exchange Geminideclared that 2022 will be “the year of the regulator”.
It comes after a Gemini survey last year showed that 20% of respondents in the UK got involved in crypto as of 2021, with around 40% of those getting involved in the year alone. last.
However, after last year’s “year of transformation”, regulators are now trying to better control the industry, Halliday said, adding that he sees increased involvement as “inevitable”.
The increased regulatory attention will also be good for the industry in the long run, Halliday said, explaining that institutions “need to have even more confidence in the crypto space” before making substantial investments.
Finally, at the end of the discussion, the moderator asked the panelists if they thought a sovereign wealth fund would get involved in the crypto market “in a year”.
To this, all participants replied “yes”, with Morehead perhaps the most optimistic with his comment, saying he even thinks “a central bank will buy bitcoin next year”.
Sovereign wealth funds and central banks are known as the biggest buyers of assets in the world, and any involvement of these entities in the bitcoin market is seen as a major new driver of bitcoin’s price.
For now, El Salvador is the only country known to hold bitcoin directly in its reserves, with the Central Reserve Bank of El Salvador buy bitcoins on behalf of the country.
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