Crypto is 'just a new asset class people don't have exposure to', says Pantera's Dan Morehead

Could be a big year for both Bitcoin and stable coins. He launched the first Bitcoin fund back in 2013 He's here on set with us Pantera Capital founder and managing partner Dan Moorhead. Dan. Great to see you again So this is a great year for crypto next year is going to be even better and on what because a lot of this year feels like pull forward of the Expectation that something will happen in the regulatory environment that will be very beneficial for Bitcoin and crypto in general And we don't even know what that is Yeah, I think that's what it was the uncertainty we're holding investors back and I think over 2025 you're gonna get much more clear regulations And that'll allow institutions to come into the space and presently most institutions really have almost zero exposure to blockchain So once they start engaging in this space, it should do well. So this fund that you run is an institutional fund, correct? So what kind of conversations are you having now? To segue into that time when institutions can actually allocate money Oh It's really changed since the election Last summer when the markets were very low and we had very little interest and since the election So many people are trying to get figure out what how to get exposure to this space when you hear a Microsoft I think Michael Saylor just pitched the whole Bitcoin strategy of micro strategies to Microsoft. They passed I think they might have passed in a prior lifetime But they passed recently thoughts on that that you know, he is obviously pushing that but a lot of people are sort of backing away I mean, is there another company that's to come in to sort of galvanize what Michaels done? He's done a great job You know raising awareness But probably most big corporations are not gonna have Bitcoin on their balance sheet Just like they don't have yen or bonds or you know gold or whatever but big institutions insurance companies pension plans Endowments, they're the ones that are gonna come in and really push this market up So what's preventing them right now those big institutions? I mean for some of them I think there seems to be nothing preventing them But what what are some of the regulations that would be lifted that would allow that to happen? Well, it's been very unclear. What is a security and what it's not a security the regulators in the u.s. Are pursuing lawsuits against some of the bigger companies in this space and so that gives Institutions pause if that gets cleared up you could imagine institutions wanting to get Access to a new asset class. This is very similar to commodities in the 80s or emerging markets in the 90s Or mortgages in the 70s and 80s. It's just a new asset class. Most people don't have exposure to it yet Dan people keep talking about regulation or more clarity and the like here how much of this move you think has to do with and Trump had been saying this on the campaign trail the idea of some Sort of Bitcoin reserve for the country and you know, is that a big part of this or obviously there's a lot of moving parts What are you most excited about what could come out of this other than regulation I think that is actually a really important thing when you're the reserve currency of the world You don't have somebody else's currency to save in so the United States doesn't have another currency. It stores 600 billion dollars in gold, which is a staggering amount. It's equivalent to 11 million years of American worker wages So that's kind of crazy Go to digital gold Bitcoins much better And so I do think it's totally rational the US already owns 1% of the world's Bitcoins Keep that increase that so I do think it's it's it is actually a really good policy There's a couple countries that already do own Bitcoin. It'd be great for the US to get out in the lead How do you manage the portfolio in terms of you know? You have outsized positions now just because of the run and so where where would you where are you trimming or where have you trimmed? And what are some of the more undervalued? Cryptos out there. Yeah, so the fun bit about cryptos We've been doing this for 11 years and bitcoins almost Gonna a little bit more than doubled this year and so everyone's talking about isn't that wild it doubled on average It's done that for 11 years in a row right so crypto going up double is not Remarkable actually and so we're normally long because we think the markets are gonna go up You know another huge amount like another order of magnitude possibly so we're typically long We're always just looking at which other tokens are interesting. We have big position in ton telegrams token Solana on doh those are some of ours