- Pomp attributes Bitcoin ETF inflows and price drops to increased investor confidence in BTC’s long-term resilience.
- He notes reduced volatility in Bitcoin’s market due to persistent ETF inflows compared to past cycles.
- Pomp sees a Spot Ether ETF approval soon but highlights Ethereum’s complex image as a potential barrier for institutional investment.
Anthony Pompliano, to many simply Pomp, has been back to the Claman Countdown on Fox Business to talk about all things crypto. Host Liz Claman asked Pomp how he explains the significant inflows into Spot Bitcoin exchange-traded funds (ETFs) at the same time the BTC price took a nosedive.
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Pomp puts that down to increased investor confidence in the resilience of the largest crypto asset. He also pointed to the long-term horizon of many investors.
I think that retail investors and institutions have both realized that Bitcoin is a resilient asset. It’s gonna be worth a lot more 5 or 10 years from now than it is today.
Anthony PomplianoSo of course, investors see these dips as buying opportunities, especially those that understand the value of BTC.
ETFs Mean Volatility of Old Days Is Gone, Says Pomp
But Pomp also had a word of warning as past cycles saw huge drawdowns, offering immense investing opportunities. The sort of volatility we saw is in the past, Pomp believes.
If we go back over the last couple of bull and bear market cycles in Bitcoin, we used to see a lot of 30% drawdowns. In 2017, there was five or six different 30% drawdowns. In the last cycle, we saw a couple of 25% drawdowns. Now what we’re starting to see is only about 15% drawdowns.
Anthony PomplianoHe puts that reduced volatility down to persistent ETF inflows, which haven’t been part of past cycles – at least not to this extent.
There’s this persistent kind of inflow coming from these ETFs, which historically was not there. And so, I think that really serves as this great tailwind for Bitcoin going through the end of the year.
Anthony PomplianoEthereum ETFs And ETH Image Problems
Pomp expects a Spot Ether ETF to be approved within weeks, but he points to some issues with Ethereum which Bitcoin doesn’t have. He says, BTC is of course the larger asset but there is an image problem for Ether.
Most people roughly know what Bitcoin is (a store of value), but that’s not necessarily the case with ETH.
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If I go and ask […] people, what is Ethereum? It’s a very convoluted, complex story. And so, some people will tell you it’s a world computer. Some people will tell you it’s an App Store, some people will tell you […] all kinds of stories. And so, the story just isn’t as clear.
Anthony PomplianoWhich, for Pomp, leaves the question of how much money institutions will really put into the yet to be approved ETH funds.
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