Dan Morehead, CEO of Pantera Capital, a $1 bln cryptocurrency hedge fund, said that the crypto market could hit “$40 trln" within ten years, in an interview for Bloomberg Television April 26.

The hedge fund’s first Bitcoin-only fund returned over 25,000 percent when the cryptocurrency hit its $20,000 peak in December 2017. The fund is “very bullish” on the crypto space and and is set up as a long-short fund, believing that current values are at “an order of magnitude or two below the real, fundamental fair value of Blockchain”:

“It’s a fascinating market … a $400 bln market that nobody owns … we’ve never seen that before … the industry as a whole could easily go to $4 trln, $40 trln is definitely possible … It’s the ten year forecast, it’s not going to happen overnight.”

Morehead pointed to last year’s listing of crypto futures on CBOE and CME as being one way to potentially go short with crypto asset investments as the market matures. Yet he struck a positive tone, estimating that Wall Street’s growing interest in clearing crypto trades will lead to “a vibrant crypto-borrow market within twelve months.”

Morehead emphasized that the market has now come back 25 percent since its early 2018 dip, and forecast it would hit new highs within the coming year:

“Bitcoin has come down below its 200-day moving average, and that is important because the currency has been going up at 170 percent per annum for six years… it’s come off 65 percent since its highs and if you put 100 bucks in each of the four times it’s touched its 200 day moving average, you’d have a 285 percent return… it’s a screaming buy right now."

Only 10 percent of Pantera’s limited partners are currently institutional investors, but Morehead predicts this will change “within the next 18 months,” especially as the SEC continues to bring the crypto market under its jurisdiction, a move that will check “the last box” for institutional capital to flood in.