Bitwise CIO Cryptocurrency Index Fund Predicts Next Major Bullish Race With ‘Positive’ Regulation

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Bitwise Asset Management CIO Matt Hougan says the current “pause” in the crypto market is due to “some uncertainty over how regulations will evolve over the next three to six months.”

Matt Hougan, chief investment officer at Bitwise Asset Management, who claims to have created the world’s first cryptocurrency index fund, argued on Wednesday that “positive” regulation for the industry could trigger the next bull market.

Hougan made the comment on “Varney & Co”. as bitcoin climbed back above $ 30,000 on Wednesday, after the most popular cryptocurrency fell below that mark on Tuesday for the first time in a month.

As of Wednesday afternoon, bitcoin was trading at around $ 32,140, ​​an increase of nearly 8% from the previous day, according to Coindesk.

Bitcoin hit a record high of $ 64,000 earlier this year.

Bitcoin and other cryptocurrencies are still not regulated within the US financial system. The euphoria surrounding cryptocurrencies earlier this year was impacted by growing regulatory discussions around the world, which weighed on the price of bitcoin.

Hougan told host Stuart Varney that he believes a resurgence of interest in cryptocurrencies “would happen naturally.”

Ticker Security Last Change Change% BITW BITWISE 10 CRYPTO INDEX FD UNIT BENEFICIAL INT 34 +3.78 + 12.51%

He said that currently “we’re going through a break” in the crypto market and offered some perspective.

“The Bitwise Index is still up 250% over the past 12 months,” Hougan told Varney. “It has risen more in the past 12 months than the S&P 500 in the past eight years.”

He argued that “the hiatus is motivated by some uncertainty about how regulations will evolve over the next three to six months.”

Hougan added that “if DC regulators are successful, I think positive regulation could start the next big wave of a crypto bull market.”

CRYPTO NEEDS REGULATIONS, BUT IT DOESN’T NEED NEW RULES

U.S. Senator Elizabeth Warren, D-Mass., Had called for surveillance of the cryptocurrency market to protect consumers from scams resulting from growing interest in digital currencies.

Bitwise Asset Management IT Director Matt Hougan on Bitcoin’s price rising above 30,000 and the impact of positive regulation on the crypto market.

Warren chaired a Senate Banking Subcommittee hearing last month on cryptocurrency issues and whether the U.S. Federal Reserve should issue its own digital currency.

Warren called the cryptocurrency markets “Wild West” during an interview on Bloomberg TV.

The senator did not suggest new regulations, but said some financial market protections are not available for cryptocurrencies.

In addition, last month, Chinese police arrested more than 1,000 people on suspicion of using cryptocurrencies to launder illegal proceeds from phone and internet scams, Reuters reported.

The Public Security Ministry said the arrests took place as Chinese authorities intensified their crackdown on the cryptocurrency trade.

Cryptocurrencies have already become a popular payment method in illegal gambling activities, according to Reuters.

Hougan argued that “a lot of education” in the cryptocurrency market is needed for politicians, regulators and the public. He pointed out that “crypto today is not like the crypto it was in 2013”.

Hougan went on to say he was “confident” that the United States could achieve “positive regulation” as the cryptocurrency space is one of the “fastest growing” of the US and global economies. .

“There is a huge venture capital and huge talent moving in this space and I don’t think the regulators want to force that overseas,” he continued.

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In Europe on Tuesday, European Union policymakers proposed another way to tighten regulation, according to Reuters, which noted it would involve companies that transfer Bitcoin or other crypto assets to collect information about senders and recipients to help the authorities crack down on dirty money.

The law proposed by the European Commission would make crypto transactions traceable. The rule already applies to wire transfers.

EU states and the European Parliament have the final say on the proposals, which means it could be two years before they become law.

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Ken Martin of FOX Business contributed to this report.

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