In a recent interview with CNBC, Steve Weiss, the Managing Partner of Short Hills Capital, with an estimated fortune of $500 million, announced that he sold almost half of his Bitcoin assets, providing insight into his decision.
Despite having been previously optimistic about Bitcoin, Weiss explained the reasons behind his move, citing skepticism about BTC’s long-term prospects and concerns related to recent developments in the market.
Weiss expressed his lack of belief in BTC and noted the absence of a clear use case or final market for the cryptocurrency. One of his major concerns is linked to the expected approval of Bitcoin exchange-traded funds (ETFs), suggesting that positive news might already be reflected in the current market value. He also highlighted the potential downside risk for Bitcoin if ETF approval does not materialize, indicating a possible negative impact on the cryptocurrency’s value.
Weiss Issues a Clear Warning to the Community Regarding Bitcoin ETF Launch
While acknowledging the potential for ETFs to increase liquidity and demand, Weiss remained cautious about their overall impact on Bitcoin’s trajectory. He argued that the direct purchase of BTC is already easily accessible through platforms like Fidelity and Robinhood, making the need for an ETF less compelling. Weiss drew comparisons with historical events, such as the launch of Bitcoin futures, which resulted in a price decline against market expectations. He warned the blockchain community against assuming that ETF approval would automatically trigger a buying frenzy, emphasizing the complexities of market dynamics and the potential increase in short positions through ETFs.
Weiss also expressed reservations about the long-term profitability of Bitcoin ETFs, suggesting that the significant involvement of large financial institutions could impact the profit margins of these investment vehicles. Despite reducing his exposure to BTC, Weiss continues to assess market conditions and considers the possibility of selling the remainder of his assets before the ETF deadline on January 10.