Bitcoin’s dominance in the cryptocurrency market remains unchallenged, according to renowned American entrepreneur Anthony Pompliano. During a recent appearance on CNBC’s Squawk Box, Pompliano articulated his belief that Bitcoin will continue to hold its leading position, dismissing the notion that blockchain technology could outpace the original cryptocurrency. This assertion revisits an old debate from the 2016-2017 cycle, often encapsulated in the phrase “blockchain, not Bitcoin.”
Bitcoin Maintains Market Lead
Pompliano’s argument centers on the idea that Bitcoin has proven its mettle over the years. While blockchain technology certainly has its applications, he emphasized that Bitcoin stands apart as the asset that people are eager to own. “In the end, it’s about what investors want to hold,” he stated, suggesting that Bitcoin’s appeal lies in its status as a unique store of value. He pointed to the years following 2016-2017 as evidence of Bitcoin’s enduring influence, highlighting how the cryptocurrency has continued to expand its reach and solidify its status.
Investors Are Choosing Different Paths
The market’s current volatility, according to Pompliano, can be traced back to diverging investor goals. Some are in pursuit of yield, while others are focused on acquiring the asset itself. This distinction has led to a notable trend: the conversion of substantial coin holdings into Bitcoin ETFs. Pompliano explained that the institutional-style custody and regulatory framework of ETFs appeal to traditional investors who might otherwise struggle with direct Bitcoin purchases. This trend aligns with recent observations of Bitcoin, Ether ETFs post almost $1B outflows as prices slide, indicating a shift in investor strategies.
ETF Demand Tied To Security And Access
Pompliano highlighted that Bitcoin ETFs are held by professional custodians, offering a layer of security that individual wallet holders might find difficult to achieve. This security feature, he suggested, explains why large holders might shift their assets into ETFs. However, he clarified that not everyone is expected to take this route. “There’s a core group that will always advocate for self-custody,” he remarked, underscoring a persistent ideological divide in the community.
Custody Choices Are Changing
The conversation around Bitcoin custody is evolving. It’s no longer solely about ideology; practicality is increasingly taking center stage. Pompliano drew a parallel between Bitcoin and the S&P 500, describing Bitcoin as an emerging mainstream store of value. Despite this shift, the mantra “not your keys, not your coins” remains potent, with many investors choosing to hold their private keys. This shift in investment preference is also seen in the broader context, as detailed in Bitcoin vs. sovereign bonds: Why are some investors making the shift?.
The entrepreneur also cautioned about the implications of having capital split across ETFs, infrastructure investments, and direct holdings. This diversification, while offering varied strategies, can contribute to heightened market volatility. Yet Pompliano views this as a simple trade-off: the more options available to investors, the more potential for price fluctuations.
As the cryptocurrency landscape continues to evolve, the ongoing discussions around Bitcoin’s role and the broader implications of diverse investment strategies raise intriguing questions. Will Bitcoin’s reign remain unchallenged amidst an ever-changing market, or will new trends and innovations disrupt the status quo? As we navigate the remainder of 2025, these questions remain at the forefront of investor discourse.
Source
This article is based on: Bitcoin’s Reign Will Continue, Popular American Entrepreneur Says
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
