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Kyle Bass Doesn't Anticipate a Lunar Flight for Bitcoin

'From here on out, it’s going to be really difficult to make money [from Bitcoin, because of] intense regulation' from the U.S., hedge fund heavyweight says.
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You can count hedge fund heavyweight Kyle Bass, founder of Hayman Capital Management, among those who isn’t looking for Bitcoin to fly to the moon.

“From here on out, it’s going to be really difficult to make money [from Bitcoin, because of] intense regulation” from the U.S. government, following China’s ban of Bitcoin earlier this year, he told Investor’s Podcast Network.

On Friday, the U.S. Securities and Exchange Commission rejected Van Eck’s proposal for an exchange-traded fund that would directly hold Bitcoin, following the launch last month of two funds linked to Bitcoin futures.

The SEC said an ETF based on the spot price of Bitcoin is vulnerable to market abuse.

“The Commission has consistently required that the listing exchange [in this case the CBOE] have a comprehensive surveillance-sharing agreement with a regulated market of significant size related to Bitcoin, or demonstrate that other means to prevent fraudulent and manipulative acts and practices are sufficient,” the SEC said.

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“The listing exchange has not met that requirement.”

As for Bass, “I think that the blockchain, I think that NFTs [nonfungible tokens], those things are all very much here to stay,” he said. “Private crypto[currencies], I put a question mark by over the long run. I’d be careful with that now.”

For Crypto Traders, A Signal to Watch and a New Way to Trade

Bitcoin recently traded at $65,489, up 1%. It has jumped 39% in the last three months. But the world’s biggest private-sector digital currency also has shown extreme volatility. It plunged 53% from April 12 to July 17.

Critics say that so far, Bitcoin represents merely a speculative vehicle.