Crypto for Advisors Highlights Potential Golden Age for Crypto Assets
André Dragosch from Bitwise Europe discusses the evolving global crypto regulatory landscape, suggesting potential for a golden age in the sector. Key updates include:
- U.S. government initiatives: Executive Order on digital financial technology, establishment of a Strategic Bitcoin Reserve, formation of the SEC's Crypto Task Force, and advancement of the GENIUS Act.
- The U.S. is now the largest sovereign holder of bitcoins, with more purchases anticipated.
- The EU's MiCA regulation will take effect at the end of 2024, offering greater regulatory clarity compared to the U.S.
- The ECB plans to launch a digital euro CBDC in October, potentially enhancing Ethereum's on-chain activity.
Despite increased U.S. economic policy uncertainty and recession fears, indicators suggest a favorable environment for bitcoin and other cryptocurrencies due to:
- Renewed dollar weakness and Fed rate cut expectations.
- Accelerating global money supply nearing all-time highs.
- Possibility of crypto assets decoupling from traditional markets.
- Structural inflows into U.S. spot bitcoin ETFs and ongoing corporate purchases contributing to supply deficits.
Queries addressed by Beth Haddock highlight SEC changes promoting transparency while maintaining consumer protection. The GENIUS Act emphasizes USD-backed stablecoins, contrasting with the EU's MiCA approach to stablecoin regulation.
Investor trends indicate that despite significant outflows from bitcoin ETFs, many investors continue to hold their assets. Strategy plans to raise $500 million in preferred stock for further bitcoin acquisitions.