Bitcoin (BTC) Awaits Trump's Regulations as Investor Gaze Focused on Regulation

Bitcoin and crypto assets are popular in investor portfolios after recording a significant price jump. This year, Bitcoin has set two new all-time highs

Bitcoin and crypto assets have seen increasing popularity among investors following the recent price surge and record highs. This year, Bitcoin has set two new all-time highs, following the approval of spot ETFs in January and Donald Trump's victory in the U.S. presidential election.

Bullish price highs and institutional inflows have driven retail adoption, turning attention to a key issue.

Investors’ Gaze Turns to Regulation

A new institutional survey by CoinShares shows that regulation is a major factor limiting a larger influx of investors. The survey included participants covering a total of around $900 billion in assets under management (AUM). According to the report, concerns over the United States' leanings have held back some in the space.

Over 30% of participants said that regulation prevents them from investing more, while 19% cited frequent market volatility. Other factors included corporate restrictions, reputational risk, and custody. Many of these factors, as the report suggests, could be addressed following a Trump victory.

This analysis from wealth managers comes despite the approval of spot Bitcoin ETFs in January, which brought an additional layer of legitimacy to the asset class. Now, following the election, regulation has taken center stage, with market participants hoping to shift the narrative.

“For those investors who already have invested, regulation and political concerns remain stubbornly at the top of investor concerns despite the significant strides made in regulatory approval of Bitcoin and Ethereum ETPs,” CoinShares wrote. “Investors seem much less concerned with protocol design and hash power concentration.”

Markets Await Trump’s Crypto Regulations

In the lead-up to the election, former U.S. President Donald Trump touched on key issues, including Bitcoin regulation and the administration's approach to the asset. At the 2024 Bitcoin Conference, Trump hinted at a strategic reserve, pledging to end the government's war on Bitcoin.

The current administration has been largely hostile to the market, with regulators filing several lawsuits against crypto firms. This dampened market sentiment and bullish continuation on price charts.

However, market experts have tipped a Republican victory to usher in a range of pro-crypto regulations, covering asset listings, custody, and taxation. The Markets in Crypto Assets (MiCA) regulation was a landmark legislation in the EU, and pro-market observers are hoping for a similar law in the United States.

The survey also highlighted Bitcoin's increasing popularity within the ecosystem, which is attracting new users. While price surges contribute to this, macro factors like inflation have also pushed BTC to new all-time highs.

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