Bitcoin’s Back & Trump Loves It While the SEC Approves Ethereum ETFs

May was an eventful month in the Bitcoin and digital asset community. We’ll soon see spot Ethereum ETFs, Bitcoin is at the center of presidential elections, and a new crypto bill is making waves in the U.S. 

There’s a lot to talk about. So, let’s jump right in! 

Bitcoin Goes Above $71,000 Before Correcting Again 📈

In the eyes of the mainstream media, Bitcoin has died over 400 times. 💀

Like anything in the Bitcoin community, there is a website covering this topic. 

But the reality looks different. 

Bitcoin is not dead; it’s far from it! 

May was yet another proof of this! After the first red month in April, it recovered big time! 

We went over $71,000 in mid-May before we saw some pullback, ending the month somewhere in the $68,000 to $69,000 range. 

The leading cryptocurrency rose 11% this month and started to attract attention again from retail investors and institutional investors. All of the spot Bitcoin ETFs saw capital net inflows into their funds. 

The pushback above $71,000 brought back a lot of bullishness and positive sentiment in the Bitcoin community. However, nothing can last forever, and we did see some liquidations, ending the month just under the $70,000 mark. 

These corrections are perfectly normal, and I’m sure we’ll see more of this pattern in this bull market. 

Because one thing is clear: we’re back! 

SEC Approves Ethereum ETF: What Does That Mean for Crypto in the U.S.? 🇺🇸

In May, the SEC somewhat surprisingly approved spot Ethereum ETFs despite the ongoing discussions about whether crypto assets (other than Bitcoin) are securities.  

With the approval of the Ethereum ETF, things are about to change. 

Firstly, it will allow institutional investors to allocate capital to the Ethereum ecosystem. We’ve seen how well this has worked with the Bitcoin ETFs. 

Secondly, with this approval, it will be pretty complicated, if not impossible, for the SEC to argue that altcoins or other digital assets are securities. 

Don’t get me wrong—Gary Gensler will probably look for a way to do this. But in reality, it's pretty hard. 

Imagine allowing the biggest asset managers on earth to offer these products but then coming back and going: “Sorry, all of you who held or traded them actually broke the securities laws.” 

This is very unlikely to happen, as all of these institutions are under strict overwatch and need to do everything according to regulation. 

However, this news is positive for the entire crypto market in the U.S., as it shows that digital assets are here to stay and even allows us to think about what other ETFs would be possible in the long run. 

A New Crypto Bill Moves Forward in the U.S. 🇺🇸

A group of lawmakers proposed the FIT21 Bill, which the House of Representatives approved a few days later. This bill is the equivalent of the MiCa regulation in Europe and would finally clarify the regulatory framework in the U.S. that would help both investors and digital asset businesses.

Up until this point, regulatory actions were taken on a case-by-case basis, with the SEC playing god and telling each crypto exchange, project, or business what was right or wrong at their choosing. 

With FIT21, all of these questions would be answered, giving each business peace of mind. 

This would also help digital asset investors who are concerned about regulatory risk and how it could affect the value of their digital asset investments in the future. 

Right now, we are waiting for the Senate to approve the bill before Biden gets his chance to veto it, which wouldn’t surprise me given how anti-crypto his cabinet has been since he took office. 

Biden has just vetoed the SAB121 bill, which would given clear guidance for crypto custodians in regard to reporting requirements. So, it’s unlikely he’ll approve FIT21.

And, of course, our “good friend” SEC Chair Gary Gensler has already spoken out against the bill, claiming it could endanger existing securities laws.  

Trump’s Loving Crypto 💰 

Last but definitely not least, we also have to mention Trump. 

Former U.S. President Donald Trump came out and publicly voiced his support for the Bitcoin and crypto industry. 

You probably read about his controversial views regarding cryptocurrency just a few years ago, but he seems to have changed his mind. He’s now very much in favor of protecting crypto and wants to propose new laws as President to do so. 

Trump was also seen at a Libertarian conference, where he promised to pardon Ross Ulbricht, the founder of Silk Road. The guy served enough time behind bars; from the looks of it, he was made an example to spread fear in the community. 

Whenever Trump says something, the left has to react. This time, they did so with various statements by the White House, denying that they would attack crypto and that crypto bills, such as FIT21, are the beginning of a new era. 

Perhaps the best part in all of this is the fact that several democrats had to break free from the Elizabeth Warren camp, saying her extreme stance against crypto is hurting America, not helping it. They are right!

What is clear is that Bitcoin has become a topic in this year’s election, which is something I had predicted last year on the BTC Source Podcast. 

Ultimately, that will bring more attention to Bitcoin, which can only be positive for the world’s hardest asset and the people (and companies) who invest in it.  

Your stacker in sats,

Patrick Lowry

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