‘Nobody Big Enough’ to Manipulate Bitcoin, but Altcoins Offer Superior Returns, Pantera’s Morehead Says
Around USD 70bn is traded in the bitcoin (BTC) market every day, meaning that the market is too large for any single actor to manipulate, crypto hedge fund Pantera Capital’s CEO Dan Morehead said, explaining his firm’s strategy of focusing on altcoin investing.
The argument that the bitcoin price is prone to manipulation is one that is often mentioned by the US Securities and Exchange Commission (SEC) as a reason why it does not allow spot-based bitcoin exchange-traded funds (ETFs) to be listed in the US.
According to Morehead, however, the argument is not valid due to the massive size the bitcoin market has grown into.
“There’s USD 70bn a day in bitcoin trading, there’s nobody big enough to manipulate that market. And there’s all kinds of crazy other stuff – like GameStop – that can be manipulated,” Morehead said during a livestreamed panel discussion on Tuesday hosted by the Financial Times.
He added that there is – in his view – no reason why crypto and blockchain technology cannot just be seen by regulators and investors as “a normal asset class like everything else.”
“There are massive exchanges, and incredible price discovery,” Morehead said about the broader crypto market.
Meanwhile, Morehead, who is known as an investor in many smaller altcoins and crypto projects, also delivered a defense for why institutions should embrace altcoin investing rather than just bitcoin.
“There’s so much creativity happening now. There are 150 projects that are liquid enough to trade and that are really important. Investors really should have exposure to a broader range of things,” Morehead said, noting that he does not believe BTC alone can serve as an effective proxy for all of the crypto market any longer.
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