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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 lukewarm on approving a series of spot Ether ETFs, but excitement over a similar series of Bitcoin ETFs arguably reignited the entire cryptocurrency industry late last year and has continued to boost it 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.
Since then, “things have changed,” Anthony Pompliano wrote in the Pump Letter.
On Monday, Bloomberg’s Eric Balciunas and James Seifert wrote about the spot after “hearing rumors that the SEC could do a 180-degree pivot on this, an increasingly political issue.” Suddenly increased the acceptance probability of Ethereum ETF from 25% to 75%.
Suddenly, improbably, the bureaucratic wheels started turning again and the price of Ether began to soar.
Bitwise Asset Management Chief Investment Officer Matt Hogan joined Yahoo Finance’s Market Domination on Wednesday to discuss the 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.
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.
“Many people on the Internet have created a $2.6 trillion industry, even in the face of government pressure. Now governments are actively attracting these individuals and companies to embrace technology. Imagine what would happen if the headwind quickly turned into a tailwind,” Pomp wrote.
Spoken like a real bull.
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