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Crypto Just Became a Political Football and Ether is the First Winner
Here are the takeaways from today’s Morning Brief, which you can register to receive every morning in your mailbox accompanied by:
Crypto is quickly becoming an election issue and Ethereum is the biggest winner so far.
From Monday to Tuesday, the ether (ETH-USD) jumped 21% – its best two-day run since January 2021.
But just before the giant surge, prospects for the next big crypto rally had become shaky.
The government had been reluctant to approve a series of ether spot ETFs. Excitement over a similar lineup of Bitcoin ETFs has arguably revived the entire market. crypto space late last year and provided continued momentum this year.
The idea was that widely available crypto ETFs would make it easier for laggards to adopt crypto. Less crypto-savvy investors could then allocate a “responsible” portion of their 401k to the new ETFs.
Jim Bianco of Bianco Research has just I poured cold water on this theory, but it looked like spot ether ETFs wouldn’t even get a chance to test the theory. The Securities and Exchange Commission – responsible for overseeing the registration process – had remained silent towards the ETF’s sponsors as an important deadline approached.
Then “the game changed” wrote Anthony Pompliano in the Pompey Letter.
On Monday, Eric Balchunas and James Seyffart of Bloomberg abruptly increased their chances of getting spot ETF approval from 25% to 75% after “hearing rumors that the SEC may do a 180 on this (increasingly political issue).”
Suddenly, the The wheels of bureaucracy have probably started turning againand the ether price surge was underway.
Matt Hogan, chief investment officer of Bitwise Asset Management, joined Yahoo Finance’s Market Domination on Wednesday to discuss the developments.
“There has been a real sea change in Washington around crypto,” he said, emphasizing recent bipartisan crypto legislation and a new emerging coalition around stable coins.
“It seems like Washington has figured out that crypto is good for America and is popular with American voters,” he said.
Pomp pointed out that just a week before, Trump had run as a pro-crypto candidate.
Whether the SEC’s about-face is related or not, crypto bulls have been re-energized with the prospect of crypto voters being courted on both sides of the aisle.
“A group of Internet users created a $2.6 trillion industry in the face of government pressure. Imagine what would happen when the government actively courted these individuals and companies, while embracing technology. The headwind is growing quickly turns into a tailwind,” Pompe wrote.
The story continues
Talked like a real bull.
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