Bitcoin's ETF Rally Is Just Getting Started, According to Pomp
Anthony Pompliano on what Larry Fink and BlackRock embracing Bitcoin means for the next cycle
By: Zack Guzman
October 25, 2023
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Bitcoin surged past $31,000 this week to hit a 16-month high, and the rally might just be getting started according to noted Bitcoiner Anthony Pompliano.
The excitement brewing from beaten-down crypto fans has been palpable – if not overly trigger happy. First, Bitcoin’s price surged on a false Cointelegraph report of BlackRock’s Bitcoin ETF getting approved by the SEC. Then this week, traders celebrated BlackRock’s ETF being listed on the website of the Depository Trust & Clearing Corp – a key market approver that is seen as one of the last sign offs before trading begins. The DTCC later gave the update that BlackRock’s ETF had been on their site since August.
And yet, even after all the head fakes, Bitcoin’s price is still elevated.
“That just shows how much pent-up demand there is for the Bitcoin ETF,” Anthony Pompliano said in a new Coinage interview, adding that institutional investors are much more aware of an ETF’s imminent approval. "If the CEO of BlackrRock decrees something, it can then set into motion what the market does. There are very few people in the world who can do that. Larry is obviously one of them."
Just to make sure I'm tracking-— Travis Kling (@Travis_Kling) October 25, 2023
Market thought Blackrock's IBTC was listed on the DTCC website yesterday. Price spiked and blew up a bunch of derivatives.
IBTC listing magically disappears today, then re-appears a few hours later.
Then it turns out IBTC had been on DTCC since…
To be clear, it very much seems to be a matter of when not if a Bitcoin ETF gets approved at this point.
Bloomberg’s ETF analysts have increased their odds of a Bitcoin ETF getting approved by early January to 90%. And last week, BlackRock’s Larry Fink told Fox Business that Bitcoin’s rise had less to do with fake news of an ETF being approved and more to do with institutional investors waking up to Bitcoin's value “as a flight-to-quality."
“Larry Fink is the ‘Chief Marketing Officer’ of Bitcoin right now and that is great for Bitcoin adoption,” Pomp said. “Larry Fink, Paul Tudor Jones, Stanley Druckenmiller, Peter Thiel, you just go through the line – like all these great investors – they all are coming to the same conclusion. … Are the best investors in the world all offsides together? It's happened before for sure, but it's probably more likely that they know something.”
Indeed, institutional investors like Fink and BlackRock embracing Bitcoin is certainly new. It was only years ago that Fink denigrated crypto as an “index of money laundering.” It’s less new to see Pomp be so bullish, as a long-time Bitcoin investor. But importantly, Pomp did provide his thinking for why it’s not just the ETF providing new support for the latest break out.
Not only is the Bitcoin reward for miners getting cut in half next year, which will reduce the amount of new supply coming on the market, but demand also should rise after an ETF is approved. Furthermore, Pomp called out recent comments from Treasury Secretary Janet Yellen estimating that the country could financially support two wars in Ukraine and Israel.
“And when you look at all of this you're like, yeah, we can afford it if you're willing to print tons and tons and tons of money,” Pomp said, adding that people are realizing Bitcoin is unique in that it can’t be debased by more printing. “There's not very many assets that fit in that bucket, right?”
For more on how Pomp sees Bitcoin growing over the next cycle and what he's most excited by, Coinage members can watch our full interview above.
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