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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%, the highest two-day gain 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 Ethereum ETFs. Excitement over a series of similar Bitcoin ETFs reignited the entire crypto industry late last year and has continued to gain momentum 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.
Jim Bianco of Bianco Research threw cold water on this theory, but it looks like the Spot Ethereum ETF won't even get a chance to test the theory. The Securities and Exchange Commission, which is responsible for overseeing the registration process, remained silent on ETF sponsors as key deadlines approached.
After that, “the game changed,” Anthony Pompliano wrote in a pompous letter.
On Monday, Bloomberg's Eric Balchunas and James Seifert suddenly raised their odds of a spot Ether ETF being approved from 25% to 75% after “hearing talk that the SEC could do a 180 on this (an increasingly political issue).”
Suddenly, improbably, the bureaucratic wheels started turning again and the price of Ether began to soar.
Bitwise Asset Management Chief Investment Officer Matt Hogan appeared on 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 popular with American voters,” he said.
Pump noted that just a week ago, Trump announced himself as a pro-crypto candidate.
Whether or not the SEC's change in policy is related, crypto bulls are reinvigorated by the prospect of attracting crypto supporters from both sides of Congress.
“In the face of government pressure, a swarm of people on the Internet created a $2.6 trillion industry. Now it's time for governments to actively do favors to these individuals and companies while embracing technology.” “Just imagine what happens when you're leaning against the wind. A headwind quickly becomes a tailwind,” he wrote. stately.
That's exactly what the bull said.
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