Bitwise Executive Consider Crypto Market Undervaluing’ Recent US Policy Shifts
The Bitwise investment executive is bullish on regulatory clarity in the US policy shifts, prompting financial advisors to carry $20 trillion in value to onboard the crypto industry.
Bitwise investment chief Matt Hougan considers the present crypto market undervalues the essence of present shifts in US policy.
Crypto Market yet to Price US Policy Shifts
The executive reflected on the recent tailwinds raising crypto prospects in Washington, terming them more bullish than the industry price in the shifts.
Hougan indicated via a publication on Tuesday, June 4, that individuals have yet to understand the ramifications of the policy shift in DC. An in-depth understanding would catapult the crypto market to test all-time highs.
Hougan, among the companies behind the world-leading Bitcoin exchange-traded funds (ETFs), decried that regulatory uncertainty has been the basis of financial advisors’ reluctance to embrace crypto for the last five years.
The criticism of regulatory uncertainty in the US is an omnipresent specter exhibited by crypto lobbyists.
A recent survey by Bitwise indicated that 64% of advisors attributed regulatory uncertainty as the ranking challenge hindering access to the digital asset class.
Hougan observes that the US has witnessed landmark political developments easing the tension. The US legislators passed a sweeping regulatory clarity bill in May. A two-thirds majority in the House voted in favor. The legislators that voted to support the bill included 71 Democrats despite the party members exhibiting explicit hostility towards crypto for several years.
Last month, the House and Senate passed Resolution 109 to repeal the Staff Accounting Bulletin (SAB) 121. The guidance by the Securities and Exchange Commission (SEC) barred the regulated banks from crypto custody services.
Regulatory Development Harbors Concrete Benefits for Crypto Industry
Hougan acknowledges President Joe Biden’s veto of the Res 109 aimed at overturning SAB 121. In a letter published before the vote, the Biden administration warned that the president would veto the bill. The Bitwise chief investment executive considers the story indicative of the winds beginning the long-desired change in the crypto favor.
Hougan considers the real magnitude of the recent developments is yet to manifest in the crypto market. The executive indicates that such is evident with Bitcoin hovering in the 60,000 to 70,000 range since April.
Hougan indicates that the investors seem disinterested in the news, with the concrete benefits of the regulatory development emerging as far removed.
Hougan recalls his conference addresses and struggles to get the story to resonate with the individuals. The executive admitted to talking about the votes, the anti-crypto army by Senator Elizabeth Warren, and the progress made on spot Ethereum (ETH) ETFs.
The absence of interest appears as a juicy element of alpha where those with an in-depth understanding of the crypto will move ahead of the crypto market. Nonetheless, he is bullish that awareness would have financial advisors who control $20 trillion in wealth embrace crypto.
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