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The latest tailwind that raises the hopes of the crypto industry in Washington is that the market is much higher than what it was sold for, said Bitwise CIO Matt Hougan.
“If people understood the change in DC, the crypto market would reach new highs,” Hugan wrote in a blog post on Tuesday.
The executive—whose company manages 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 catchphrase that's become ubiquitous in the US digital assets industry.
In Bitwise's latest survey, 64% of advisors cited the asset class as their biggest challenge.
However, recent political changes in Washington are easing the tension. Last month, the House approved a bill to provide clear regulatory transparency for crypto assets and companies, with a two-thirds vote. That includes 71 Democrats — including members of the party — who have shown clear hostility to crypto over the years.
The House and Senate both passed resolutions with bipartisan support to block the SEC's guidance.
Although President Joe Biden later rejected the bill, Hugan interpreted the story as a sign that “the winds are starting to change.”
However, the scale of these developments is yet to be played in the market, Bitcoin is treading water between $60,000 and $70,000 for more than two months.
Even investors don't seem interested in the news yet, Hugan said, because the tangible benefits of such regulatory structures are “far away.”
I've been on the road talking at meetings for the past few weeks and try as I might, I just can't get this story to resonate with people, he wrote. And the incredible growth in Ethereum ETFs, and people's eyes glaze over.
The lack of interest, for those who know about crypto, seems like little alpha juice to stay ahead of the market, with $20 trillion of assets under the control of US financial advisors.
“So imagine how much of that $20 trillion will go into crypto when the big hurdle is lifted,” he wrote.
Edited by Ryan Ozawa.
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