Cryptocurrency could face billions of exposure in the financial advisory industry once US regulators clear up legal uncertainties, the chief investment officer of crypto asset manager Bitwise has said.
Regulatory uncertainty is the main reason financial advisors have not increased their exposure to cryptocurrencies over the past five years, Matt Hogan, chief investment officer at Bitwise, wrote in a June 4 article.
Hogan believes the U.S. is finally moving toward clearer regulation, which could pave the way for the $20 trillion financial advisory industry.
“So imagine how much of that $20 trillion will go to cryptocurrencies when the biggest barrier is lifted.”
He added: “If you think BlackRock’s entry into the cryptocurrency space had a positive impact on the market, imagine if all of Wall Street accepted cryptocurrencies as a normal part of the market . »
Hogan said “change” began last month when Democrats “crossed the aisle” to repeal HOP 121 and again when the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which many in the cryptocurrency industry have called a victory. .
The SEC also approved exchange-traded funds (ETFs) for Ethereum (ETH) on May 23 after months of analysts predicting they would lead to a decline.
Hogan pointed to President Joe Biden’s veto of SAB 121 which he said showed “cryptocurrencies still have a long way to go.”
But even that is a minor setback. “We have been sailing against the wind for a decade in the cryptocurrency space,” he added.
The market is not ready for what is coming
Hogan believes there is plenty of “alpha” to be captured in the cryptocurrency market, which he says is largely untouched by those “outside the crypto bubble.”
He continues to see “people’s eyes widen” when he talks about political developments related to cryptocurrencies at conferences.
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“If people understood the implications of the change in Washington, DC, the cryptocurrency market would reach unprecedented heights,” Hogan said.
Opposing the repeal of SAB 121, FIT21 is unlikely to reach the Senate before the November elections and the launch of approved Ethereum spot ETFs is still planned, Hogan acknowledged that “the policy has not yet really changed in Washington.”
“The tide has changed, but the water hasn’t arrived yet. Wake me up when the action happens.
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