Bitcoin 'Much Better Than Gold' As Reserve Asset, Says Crypto Hedge Fund Founder

Pantera Capital founder and managing partner Dan Morehead believes that cryptocurrency is a burgeoning asset class still largely untapped by institutional investors.

What Happened: Speaking in an interview with CNBC on Thursday, Morehead emphasized the transformative potential of blockchain technology, likening it to other emerging markets of the past.

"This is very similar to commodities in the 80s, emerging markets in the 90s, or mortgages in the 70s and 80s," Morehead explained. "It's just a new asset class. Most people don't have exposure to it yet."

Morehead pointed to regulatory uncertainty as one of the primary barriers preventing institutional participation.

He noted that ongoing lawsuits involving major crypto firms have created hesitation among pension funds, endowments, and other large players.

"It's been very unclear what is a security and what is not," he said, adding that clearer regulatory guidelines could pave the way for institutional adoption.

Despite these hurdles, Morehead remains optimistic about the long-term trajectory of cryptocurrency markets.

He highlighted Bitcoin's BTC/USD consistent performance over the past decade, stating, "Bitcoin has more than doubled this year, but that's not unusual—it's done that for 11 years in a row."

Morehead also addressed the idea of the U.S. building a Bitcoin reserve, an idea recently floated by policymakers.

"The U.S. already owns 1% of the world's Bitcoins," he remarked. "It would be great for the U.S. to get out in the lead. Bitcoin is much better than gold as a reserve asset."

Also Read: Bitcoin To Hit $160,000 By 2025 For These 3 Reasons: Report

As for Pantera's portfolio, Morehead mentioned significant positions in tokens like Solana SOL/USD , The Open Network TON/USD and Ondo ONDO/USD.

He highlighted the firm's strategy of maintaining long positions due to their confidence in crypto's potential for exponential growth.

"We're typically long because we think the markets are going to go up another huge amount—possibly by another order of magnitude," he said.

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