Bitwise CIO Matt Hougan says people are underestimating a political shift on crypto currently unfolding in Washington, D.C.
In a new memo, Hougan says crypto has successfully built “political muscle” in recent years, including one of the top political action committees in D.C.
Hougan says that if everyone truly understood the significance of the recent shift in Washington, crypto markets would already be at all-time highs.
“The reason this smells like alpha to me is that, outside of the crypto bubble, no one cares.
I’ve been on the road speaking at conferences for the past few weeks and, try though I might, I cannot get this story to resonate with people. I talk about the votes, and Warren’s anti-crypto army, and the surprise progress on Ethereum ETFs, and people’s eyes glaze over.
The story is too complex, and the impact too far removed. After all, no policies have actually changed in Washington yet. SAB 121’s repeal was vetoed; FIT21 is unlikely to make it through the Senate before the elections; and the Ethereum ETFs haven’t actually launched.
The tide has changed, but the water hasn’t come in yet. Wake me up when the action happens.
But here’s the thing: If people understood the ramifications of the shift in D.C., the crypto market would be at new all-time highs.”
According to the investor, a sizeable chunk of the $20 trillion currently being managed by financial advisors will likely flow into digital assets once the tension between politicians and the industry wears off.
“If you think BlackRock’s move into the crypto space positively impacted the market, imagine if all of Wall Street accepted crypto as a normal part of the market. Talk about mainstream.
The market will wake up to the fact that we are in a new era for crypto, and when it does, I suspect it will move the industry towards all-time highs. But until it does, there may just be some alpha laying around.”
Featured Image: Shutterstock/pryzmat
Credit: Source link
