Spencer Bogart, Partner at Blockchain Capital, and Hunter Horsley, the CEO of Bitwise Asset Management, recently spoke to Bloomberg about the current state of the cryptocurrency market and surrounding speculations. They also discussed the overall future vision for cryptocurrencies.
This comes after a slight rally in the price of Bitcoin [BTC] and other cryptocurrencies saw a hike in price after consistent bear attacks the previous week. Horsley spoke about this, stating:
“I think prior to this week we saw a huge drawdown and I think that was an overreaction to the procedural extension of the VanEck ETF filing and also the rejection of the Winklevoss filing. I think potential investors and traders think that the market corrected too far.”
The United States Securities and Exchanges Commission [SEC] is currently in the process of approving an Exchange-Traded Fund proposed by VanEck with Bitcoin as the underlying commodity. However, a proposal from the Winklevoss Twins was already rejected, with the SEC quoting reasons of an unregulated market that is prone to manipulation. Bogart gave his opinion on this, stating:
“As far as the SEC goes, I think they’re running out of reasons to disapprove some of these thing. Some of the surveillance sharing type arguments and the underlying surveillance of some of these crypto spot markets is going away because some of the biggest exchanges like Gemini and Coinbase have set up surveillance sharing type things that should appease the SEC.”
Even as the SEC delays the approval of an ETF, there are many products that have already found their way into the market through overseas offerings, stated Bogart. This also includes the ETN that was recently approved for trading in the United States. He also spoke about the early stages of the market when he stated:
“When Facebook reported earnings a few weeks ago, there was a $120 billion of value erased in after-hours trading alone. All of Bitcoin today is worth $113 billion. So if it went to $0 today it would be in smaller losses than what Facebook had.”
When asked about the interest in the market, Horsley responded positively. He stated that while Bitwise has raised a few million dollars a month for the past few months, the incomes this month would be higher than what they saw last month. Furthermore, he stated:
“I think we’re seeing a lot of interest and people are worried about the timing, They don’t want to catch a falling knife. They know that they want to do something, but they don’t know when. We talk with the largest institutions, all of them are interested.”
Horsley also mentioned an interesting statistic when he spoke about a recent webinar that was conducted by Bitwise. During the session, which included about 500 advisors, about 75% stated that they would consider an allocation of cryptocurrencies. He stated:
“…80% said that their clients were asking about crypto. So I think the interest is there, and that the question is for people to get comfortable with what their thesis is going to be.. that was the top issues mentioned inthe webinar and then what timings make sense to them. Do they want to come in now, with the idea that the prices are low? [Or] do they want to wait and see how things play out if they get lower, or wait until there’s more consensus internally.”
Overall, this paints a positive picture for the adoption of cryptocurrencies among hedge funds and associated financial institutions.
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