Welcome to Crypto Investing Daily! I’m your host, Alex Benfield, and today, we’ve got a lot to unpack. Let’s dive into the latest developments in the crypto market, including the recent approval of the Ethereum ETF and the significant regulatory changes that have reshaped the landscape.

I’ve covered everything in this video, but if you would like, you can also read the article below.

Market Overview

Let’s start with a quick overview of the current market conditions. Bitcoin has been experiencing some interesting price movements. After a correction that started in mid-March and bottomed out at just under $57,000 on May 1st, Bitcoin has climbed back up to around $69,000, representing a 20% gain from those lows. It’s been fluctuating between $66,500 and $69,000 recently, trying to establish a new support level.

Ethereum, on the other hand, has seen even more volatility. It also experienced a correction in mid-March, bottoming out on May 1st at about $2,800. Since then, it has rebounded by approximately 33%, trading around $3,700 to $3,900. This surge is largely driven by the recent news of the approval of the spot Ethereum ETFs, which we’ll discuss shortly.

Big Picture: Crypto’s Roller Coaster Year

Taking a step back, it’s been a tumultuous year for crypto. In 2023, the market began to recover from the severe bear market lows of 2022. This recovery phase saw a significant build-up in positive price momentum, bringing crypto back into the spotlight.

The turning point came in January 2024 with the approval of the Bitcoin ETFs. This was a watershed moment, opening up the cryptocurrency market to major institutions, money managers, and passive income funds. The approval of these ETFs marked the start of a new bull market, propelling Bitcoin to new all-time highs before its next halving—a first in the history of crypto cycles.

Institutional Adoption: A Game Changer

One of the most significant outcomes of this institutional adoption is the rise of BlackRock’s iShares Bitcoin Trust (IBIT), which has become the largest Bitcoin fund in the world. It has surpassed Grayscale’s GBTC, now holding approximately $20 billion in assets. This remarkable growth has occurred in just five months of trading, highlighting the potential for even greater expansion in the future.

Despite this progress, the journey hasn’t been smooth. The crypto industry has faced substantial hostility from U.S. regulators and politicians. Since the FTX fiasco and the beginning of the Biden administration, crypto has had a bad rap in America, with regulators making consistent efforts to slow down its adoption. Yet, Bitcoin managed to climb to new all-time highs, proving its resilience.

The Turning Point: A New Regulatory Environment

The landscape began to shift dramatically following a pivotal meeting at Mar-a-Lago on May 10th, where former President Trump met with key cryptocurrency industry leaders, including Ryan Selkis of Messari. This meeting appears to have been a catalyst for significant regulatory changes that have since unfolded.

Key Developments Include:

1. Repeal of SAB 121: This bill, which would have made it more challenging for banks to custody crypto, was repealed in Congress. Its repeal removes a major roadblock for institutional adoption of cryptocurrency.

2. Passing of FIT 21: The House passed the FIT 21 bill, which transfers oversight of the crypto space to commodities regulators instead of the SEC. This is a significant shift, given the SEC’s historically unfriendly stance towards crypto under the leadership of Gary Gensler.

3. Approval of Spot Ethereum ETFs: Against all odds, the SEC approved the spot Ethereum ETFs, bringing the second-largest cryptocurrency closer to mainstream Wall Street investors. This approval could potentially put Ethereum on a similar path to Bitcoin, driving it to new highs.

4. Resignation of FDIC Chair Martin Gruenberg: Known for his anti-crypto stance, Gruenberg’s resignation was a surprising yet significant development. The official reason was a hostile workplace, but it seems his antagonistic attitude towards crypto may have played a role.

Looking Ahead

These regulatory shifts mark substantial progress for the crypto industry in the United States. While prices haven’t fully reflected these changes yet, it’s important to recognize that institutional adoption is typically a slow process. Large institutions and funds move deliberately, evaluating their strategies over years and decades.

As we move into the summer months, I expect the market to remain relatively stable, with sideways trading likely to continue through June and July. However, the groundwork is being laid for a significant breakout towards the end of the summer and into the fall. Bitcoin and Ethereum are poised for new highs, and we might even see an altcoin season as these developments unfold.

In summary, the crypto market is on the brink of major changes. Institutional adoption is accelerating, regulatory hurdles are being removed, and the groundwork for future growth is being established. So, buckle up—this ride is about to get even more exciting in the months ahead.

Thank you for tuning in to Crypto Investing Daily. Stay informed, stay prepared, and get ready for the next wave of crypto innovation. See you next time!

Editor’s Note: Crypto is making ordinary investors rich, and it also serves as an inflation hedge. But you need to make your move now before the next leg-up in the crypto bull market of 2024. Every day you wait is literally costing you thousands in profits.

If you’re worried you can’t figure out crypto… don’t be. Our in-house crypto expert, Alex Benfield, will walk you through everything you need to know about crypto, step by step.

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This article previously appeared on Investing Daily.