Leading research and brokerage business Bernstein’s analysts stress the possibility of a cryptocurrency boom if the GOP wins the 2018 U.S. presidential election. According to them, a Republican win may spark a pro-business regulatory climate to encourage investment in digital assets like Ethereum (ETH) and Bitcoin (BTC).
Analysts Feeling Bullish Despite Outflows from Bitcoin ETFs
Analysts at Bernstein, Gautam Chhugani and Mahika Sapra, note a brief period of pessimism in cryptocurrency, especially given that spot Bitcoin ETFs have seen daily net outflows exceeding $100 million for the past six days. The analysts are still optimistic about the future despite almost $1 billion in withdrawals. They point out that since their launch in January, these funds have received over $14 billion in net inflows, mainly responsible for the 75% price surge of Bitcoin in the first quarter.
The analysts also expect big things to happen in the upcoming months. They believe that extensive private bank systems will soon start to allow Bitcoin ETFs, which is anticipated to have a revolutionary effect on how Bitcoin is allocated to portfolios. The clearance may lead to a rise in new advisors and an expansion of investor portfolio allocations.
Politics Could Change, Increasing Ethereum ETF Value
There are concerns about the possible market impact of the spot Ethereum ETFs, which the U.S. Securities and Exchange Commission (SEC) just approved. In contrast to their Bitcoin counterparts, Spot Ethereum ETFs lack a staking function, which could restrict spot conversion rates. On a smaller scale, analysts anticipate that these ETFs will draw similar sources of demand.
A more compelling use case for Ethereum is its positioning as a tokenization platform for real-world assets and stablecoin payments. However, the necessity of more precise regulatory restrictions remains a significant obstacle. According to analysts, a change in leadership may open the door for more benevolent laws, which would rekindle interest in Ethereum and the technology that powers it.
Pro-Crypto GOP May Encourage Market Acceptance
The likelihood of an election in the approaching election is crucial for the bitcoin market. A Republican victory, in the opinion of Bernstein analysts, may portray cryptocurrency as the leading” “Trump t “ade,“ in which the market might experience significant gains because of the administration’s pro-crypto position. A more crypto-friendly regulatory environment is anticipated due to this change in governance, which may facilitate the acceptance and integration of cryptocurrencies like Ethereum and Bitcoin into established financial institutions.
Analysts conclude that the structural cycle of cryptocurrency adoption is still robust, notwithstanding the present market downturns. They believe that any short-term dip presents an opportunity for investors to buy at favourable prices, and they project that the new crypto bull cycle, fueled by continued adoption and positive political developments, may last for several years.
