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Policy Changes in the US Could Open a $20 Trillion Cryptocurrency Market: Bitwise CIO
Matt Hougan, Bitwise’s investment firm, predicts the cryptocurrency sector will benefit as the United States approaches clear guidelines, ready to tap into the $20 trillion financial advice market once legal uncertainties are resolved .
The market is underestimating the impact of Washington’s changing attitude towards cryptocurrencies. Despite the veto, in my opinion we should already be at an all-time high.
I talked about this in my latest CIO memo: “Washington Awakens: This Is What Alpha Looks Like.”https://t.co/1ukDeCYNLs pic.twitter.com/6bO3iIh2aY
— Matt Hougan (@Matt_Hougan) June 4, 2024
Hogan yes declared that regulatory uncertainty has been the primary factor limiting the growth of financial advisor engagement with cryptocurrencies over the past five years. However, he also highlights that there is a change in the legal framework that could lead to greater adoption in the field of financial advisory services.
Hougan sees a future in which a substantial portion of the $20 trillion in financial advisory assets transitions to cryptocurrencies once regulators grant full access, drawing parallels with BlackRock’s entry into the market and anticipating further expansion of the market.
Recent progress includes Democrats joining forces to repeal Staff Accounting Bulletin 121, the House passing the Financial Innovation and Technology for the 21st Century Act (FIT21) as a win for the cryptocurrency industry, and l Securities and Exchange Commission approval of spot Ether ETFs in May. 23 reporting positivity.
Even though Biden recently vetoed the repeal of SAB 121, Hougan still sees great potential in the future of cryptocurrencies. He also notes that there are still issues to be resolved, such as the fate of FIT21 in the Senate and the imminent release of Ether spot ETFs, but on balance the trend is upwards.
Hougan highlights the significant growth potential of the cryptocurrency market, noting a lack of awareness among some individuals about its existence and potential. He believes that greater awareness of political developments related to cryptocurrencies will push the market to new heights.
Although the change in regulation has not been fully realized, Hougan remains optimistic about the future of the cryptocurrency market. He expects tangible action in Washington and is confident that the market will continue to expand and create more opportunities for participants in the cryptosphere.
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