Anthony Pompliano Discusses SEC Delay and Grayscale Ruling
On September 1, 2023, Anthony Pompliano, founder and partner of Pomp Investments, appeared on CNBC’s “Squawk Box” to discuss the recent Court of Appeals ruling in favor of Grayscale and the SEC’s delay in ruling on spot Bitcoin ETF applications.
Key Points:
- Pompliano believes the SEC’s decision to delay ruling on spot Bitcoin ETFs for another 45 days was expected. He stated that the SEC doesn’t have to approve the ETFs just because they lost a recent lawsuit. They need to reconsider based on other factors.
- Pompliano predicts that spot Bitcoin ETFs will eventually be approved and mentions a potential supply shock in Bitcoin that could drive up the price.
- He notes that the market’s reaction to the Grayscale ruling was quickly wiped out due to seasonal factors. Wall Street and retail investors are becoming more involved in the crypto space.
- Pompliano recognizes the SEC’s challenge in balancing innovation and investor protection. He believes Bitcoin is treated as an asset, not a commodity, by the SEC, but the outcome will ultimately be decided by the courts.
- He expresses a more sympathetic view towards SEC Chairman Gary Gensler and emphasizes the importance of education and dialogue for progress to be made.
Pompliano’s Hot Take:
Pompliano believes a spot Bitcoin ETF would primarily attract large institutions rather than retail investors. He states that retail investors already have ways to access Bitcoin and that sovereign wealth funds and large institutions are more likely to invest through ETFs. He also mentions that Bitcoin’s primary use currently is as a store of value.
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