Pantera Capital CEO Dan Moorehead is challenging the traditional Wall Street adage of "Buy the rumor, sell the news," and suggests a different outcome for spot Bitcoin BTC/USD Exchange Traded Funds (ETFs).
What Happened: The conventional wisdom in financial markets, "Buy the rumor, sell the news," implies that investors often purchase assets based on speculation and sell them once the actual event occurs, Moorehead says.
The introduction of a spot Bitcoin ETF, unlike previous events, will fundamentally change access to Bitcoin and have a positive impact on its adoption.
Previous events like the launch of CME Futures and the public listing of Coinbase Inc. COIN, both of which led to substantial market downturns post-event, did not significantly expand real-world access to Bitcoin.
In contrast, a Bitcoin ETF would open up new investor pools, legitimizing and diversifying the cryptocurrency market.
Moorehead also noted the journey from Bitcoin faucets to the establishment of exchanges like Mt.Gox and Bitstamp. He emphasized the limitations of futures, pointing out their inefficiency compared to the immediate settlement nature of Bitcoin.
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Moorehead also likened Bitcoin to gold following the introduction of gold ETFs as an indicator of the potential impact an ETF can have.
Moorehead's bullish outlook for Bitcoin with the introduction of a spot ETF represents a significant shift in the perception of cryptocurrency investments and their integration into mainstream financial markets.
Read Next: Could Bitcoin's Market Cap Reach $3 Trillion? Here's Why Researchers Predict 'Yes'
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