Cryptocurrencies have the potential to become the dominant form of currency trading, according to analysts at research and brokerage firm Bernstein. Despite the current bearish sentiment in the sector, the analysts argue that the structural adoption cycle remains intact and cryptocurrencies could become the main focus of trading if voter sentiment leans more towards the Republican party. This analysis was published by The Block on June 24th. Former US president and current presidential candidate, Donald Trump, has even declared himself the “President of Cryptography”.
The analysts at Bernstein highlighted two key arguments to support their view. Firstly, the recent outflows of exchange-traded funds (ETFs) based on Bitcoin have raised concerns. Secondly, the potential launch of an Ethereum ETF with high expectations could end up being disappointing. Spot Bitcoin ETFs have been instrumental in attracting over $14 billion in net inflows since their trading launch in January. They have been the main catalyst for the growth of the largest cryptocurrency in the market during the first quarter.
The analysts noted that there may be a temporary pause before large private banking platforms whitelist Bitcoin ETFs. However, they believe that once these approvals are granted, it will be a game changer for portfolio allocations towards Bitcoin. Currently, Bitcoin ETFs represent only 0.1-0.2% of the existing sample of wealth advisors, leaving room for both new advisor penetration and increased allocations in portfolios.
In terms of Bitcoin’s price, it was quoted at $61,576.95 at the time of publication, with a 4.2% increase in the last 24 hours.
Meanwhile, Donald Trump made headlines during a fundraiser in San Francisco where he proclaimed himself the “President of Cryptography.” The event gathered prominent figures in the technology sector, including venture capitalists David Sacks and Chamath Palihapitiya. Trump expressed his commitment to the development of the cryptocurrency sector and criticized Democrats for their attempts to impose excessive regulations that could hinder its growth. He promised to support policies that benefit the crypto ecosystem.
It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.
In other news, Trump recently received $2 million in bitcoin donations from the Winklevoss twins.