Morgan Creek Digital Assets Co-Founder on Spot Bitcoin and Ethereum ETFs in the U.S.

Anthony Pompliano, who runs Pomp Investments, recently appeared on the Fox Business show “The Claman Countdown” (hosted by Liz Claman)to discuss several key topics in the cryptocurrency space.

Anthony “Pomp” Pompliano is an entrepreneur and technology investor. He runs his family office, which makes private investments, along with owning majority stakes in a number of operating businesses. 

Additionally, Pomp hosts popular conversations on “The Pomp Podcast,” which has been downloaded more than 50 million times. Pomp also writes a letter that is read by more than 250,000 investors each morning.

In his role from 2018 to 2020, he co-founded and served as a partner at Morgan Creek Digital Assets (MCDA). This multi-strategy investment firm is specialized in providing access to blockchain technology and digital assets for institutional clients and wealthy family offices. MCDA is supported by Morgan Creek Capital Management, a significant asset manager based in the United States, managing multi-billion dollar investments.

Pompliano began his conversation with Claman by addressing BlackRock’s move to launch a spot Ethereum ETF, noting that traditionally contrarian bets in the crypto market are becoming mainstream as large financial institutions like BlackRock enter the space. He emphasized that this shift is likely to lead to increased capital flow and rising prices in the crypto market.

When asked about the interest in Ethereum, Pompliano expressed his belief that the entire crypto market, including Ethereum, is often underestimated. He predicted that the market could eventually be valued in the tens of trillions of dollars, with Bitcoin remaining the dominant asset.

Discussing the SEC’s stance on spot Bitcoin ETFs in the U.S., Pompliano suggested that all pending applications should be approved simultaneously to avoid regulatory favoritism. He argued that this approach would allow the market to naturally decide the most successful ETFs, thereby resolving potential issues for the SEC. Pompliano refrained from speculating on which firm might first receive ETF approval, instead emphasizing the importance of a fair and market-driven process.

Addressing Bitcoin’s price movements and volatility, Pompliano expressed enthusiasm for the asset’s volatility, seeing it as a driver of outsized returns. He highlighted Bitcoin’s unique qualities, such as auditability and the potential for asymmetrical returns, which are not commonly found in other assets. Pompliano noted that a significant portion of Bitcoin in circulation has not moved in the past year, indicating strong holding behavior among investors. He predicted that the eventual approval of a spot Bitcoin ETF in the U.S., a return to loose monetary policy, and the upcoming Bitcoin halving event should lead to substantial price increases similar to those seen in 2021.

https://youtube.com/watch?v=qLwUpw4sQcM%3Ffeature%3Doembed

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