The executive team at Bitwise Capital Investment Office has reason to believe that the market is not fully recognizing the significant shifts in Washington’s perspective towards cryptocurrencies.

Matt Hougan, the Chief Investment Officer at Bitwise, believes that the changing attitude of Washington towards cryptocurrencies is not being fully acknowledged. In a memo on June 4, Hougan stated that recent developments in the US political landscape have been favorable towards crypto, and the market would have already reached a record high if this impact had been taken into consideration. This shift in Washington’s stance could unlock significant potential for investors.

Traditionally, crypto has been a divisive issue, with Republicans generally in favor and Democrats showing resistance. However, strategic efforts by crypto advocates have led to notable legislative actions. For example, on May 8, 21 House Democrats voted with Republicans to repeal SAB 121, a controversial SEC rule that limited large banks from holding crypto. This marked a positive step towards crypto in US history.

Further progress was made on May 20 when a comprehensive crypto bill, FIT21, was passed by the House with bipartisan support. Additionally, the SEC approved applications to list spot Ethereum ETFs, which came as a surprise to many. Despite ongoing political challenges, Hougan sees these developments as a significant turning point for the crypto industry.

Hougan believes that the broader market has yet to fully recognize the significance of these political changes. The lack of clear regulations has long been a concern for financial advisors and Wall Street institutions. Once this hurdle is overcome, a considerable amount of the estimated $20 trillion managed by advisors could potentially flow into the crypto market. If Wall Street fully embraces crypto as a mainstream asset, the market could see substantial growth.

While the market may not be reacting to these changes at the moment, Hougan sees this as an opportunity for knowledgeable investors to take advantage of potential opportunities for profit. He believes that until the market acknowledges this new era for crypto, there may be untapped potential for investors.

For more information on Bitwise and the latest developments in the US related to crypto and the Alpha Market Report, please visit Bitwise.