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Cryptocurrencies are quickly becoming an election issue, with Ethereum emerging as the biggest winner so far.
From Monday to Tuesday, Ethereum (ETH-USD) rose 21%, hitting its highest two-day price since January 2021.
But right before the huge rally, the prospects for the next big crypto rally were looking shaky.
The government has been reluctant to approve a series of Spot Ether ETFs. Excitement over a similar set of Bitcoin ETFs reignited the crypto industry as a whole late last year, and likely provided a continued boost into this year.
It was believed that widely available crypto ETFs would encourage the adoption of cryptocurrencies by late entrants. Investors who are not very familiar with cryptocurrencies can allocate the “responsible” portion of their 401k to a new ETF.
Bianco Research’s Jim Bianco just threw cold water on the theory, but it seems like the Spot Ether ETF won’t even get a chance to test it. The Securities and Exchange Commission, which is responsible for overseeing the registration process, has remained silent on ETF sponsors even as key deadlines approach.
After that, “the game changed,” Anthony Pompliano wrote in a pompous letter.
On Monday, Bloomberg’s Eric Balciunas and James Seifert wrote about Spot Ether ETF approval after “hearing that the SEC could do a 180 percent on this (increasingly political issue).” The probability was suddenly increased from 25% to 75%.
Suddenly, the wheels of bureaucracy unbelievably started turning again, and the price of Ethereum began to skyrocket.
Bitwise Asset Management Chief Investment Officer Matt Hogan joined Yahoo Finance’s Market Domination on Wednesday to discuss this development.
He highlighted recent bipartisan cryptocurrency legislation and the rise of a new coalition around stablecoins, saying, “There are big changes happening in Washington around cryptocurrencies.”
“Washington seems to have gotten the message that cryptocurrencies are good for the United States and are popular with American voters,” he said.
Pump noted that just a week ago, Trump emerged as a pro-crypto candidate.
Crypto bulls are reinvigorated by the prospect of crypto voters being courted from both sides of the aisle, whether or not the SEC reversal is related.
“In the face of government pressure, a bunch of people on the internet created a $2.6 trillion industry. Imagine what will happen when governments now actively pander to these individuals and companies while also actively embracing the technology. Headwinds quickly become tailwinds,” he writes. Pomp and circumstance.
Talk like a real bull.
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