On September 6, 2023, Anthony “Pomp” Pompliano, a prominent entrepreneur and crypto investor, appeared on Fox Business’ “The Claman Countdown,” hosted by Liz Claman.
Pompliano began by commenting on Grayscale’s recent legal win against the SEC. He noted that the American legal system allows for disagreements between market participants and regulators to be settled in court. In Grayscale’s case, the judge sided with the investment company. Pompliano emphasized that the SEC now faces a decision: whether to approve Grayscale’s application to convert its Bitcoin trust into a spot ETF or to consider other pending ETF applications. He argued that regulators should not play the role of referees picking winners and losers but should aim to create fair markets. In his view, the SEC should approve all pending applications simultaneously.
When asked about Bitcoin’s current market status, Pompliano described it as a “macro asset” with high illiquidity. He pointed out that approximately 70% of all Bitcoin in circulation is held by long-term investors who haven’t sold in the past year. He drew parallels between the current market conditions and those leading up to the 2020 bull run, suggesting that a similar setup is unfolding. According to Pompliano, the approval of ETF applications will serve as a demand shock, while an upcoming Bitcoin halving will act as a supply shock, potentially driving the asset’s price up significantly.
Pompliano also addressed speculation that the SEC might roll back its approval of Bitcoin Futures to strengthen its case against spot Bitcoin ETFs. While acknowledging that rule-makers have the power to change rules, he considered such a rollback unlikely. He expressed confidence that ETF applications would likely be approved before the end of the year, especially with major players like BlackRock and Fidelity entering the space.
Pompliano highlighted a recent prediction by Bernstein that the stablecoin market could reach a $3 trillion market cap, up from its current $125 billion. He argued that if this prediction comes true, the entire cryptocurrency market, including Bitcoin, could exceed $10 trillion in market cap.
Toward the end of the interview, Pompliano discussed Coinbase, where he has been an investor since its private market days. He praised the company for being a regulated leader in the American financial system and noted its expansion into lending to institutions. He believes that Coinbase is poised to be one of its major infrastructure winners if the crypto industry succeeds.
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