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According to Bitwise CIO Matt Hougan, the recent tailwinds lifting the crypto industry’s outlook in Washington are far more optimistic than the market has priced in.
“If people understood the consequences of the change in Washington, the crypto market would reach new all-time highs,” Hougan wrote in a statement. blog post Tuesday.
The executive, whose company runs one of the world’s largest Bitcoin ETFs, said “regulatory uncertainty” is the main reason financial advisors have moved away from crypto investing over the past five years . It’s a phrase that has become a pervasive specter in the US digital assets industry.
According to Bitwise’s latest survey on the topic, 64% of advisors cited this reason as their main challenge in entering the asset class.
Yet recent political developments in Washington are easing this tension. Last month, the House passed a bill to bring overall regulatory clarity to crypto assets and businesses, with a two-thirds majority voting in favor. This included 71 Democrats, members of a party that has demonstrated explicit hostility into crypto for years now.
The House and Senate also passed a resolution with bipartisan support to overturn SEC guidance preventing regulated banks from offering crypto custody services.
Although President Joe Biden later vetoed the billHougan interprets the story as a sign that “the winds have started to turn” in favor of crypto.
Yet the scale of these developments has yet to be reflected in the market, where Bitcoin has been treading water between $60,000 and $70,000 for more than two months.
According to Hougan, investors do not yet seem interested in this news, given that the concrete benefits of such regulatory developments are simply “too far away”.
“I’ve been on the road speaking at conferences over the past few weeks and, despite my best efforts, I can’t seem to get this story to resonate with people,” he wrote. “I’m talking about votes and Warren’s anti-crypto army, and the surprise progress on Ethereum ETFand people’s eyes widen.
The lack of interest, he says, looks like a juicy bit of alpha — an advantage for getting ahead of the market — to those familiar with crypto, with $20 trillion in wealth controlled by U.S. financial advisors at stake.
“Imagine then how much of that $20 trillion will go to crypto when the biggest barrier is lifted,” he wrote.
Edited by Ryan Ozawa.
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