YouHodler Chief of Markets Comments on Donald Trump Presidency Impact on Crypto

CI has received comments from Ruslan Lienkha, chief of markets at YouHodler, a regulated Virtual Asset Service Provider (VASP), regarding the new Trump administration and its impact on digital assets. President Trump is well known for his support of crypto, and markets have responded positively to this support, contrasting with the anti-innovation Biden administration.

Lienkha believes we will see an accelerated pace of crypto ETF approvals, but creating a regulatory framework for crypto will be the most critical change for the industry. Emblematic of the change is the selection of Mark Uyeda as acting Chair of the SEC. Uyeda’s first move was to create a Crypto Task Force – helmed by Commissioner Hester Peirce who supports digital asset innovation.

“This could lead to the full recognition of cryptocurrencies as a distinct asset class,” said Lienkha. “Previously, attempts were made to classify cryptocurrencies under existing asset categories, such as securities or commodities, which did not fully capture their unique characteristics.”

Lienkha believes that both the Bitcoin and Ethereum markets will become more stable over time. The recent spike in volatility has been driven by more liquidity and interest in crypto.

“As the process of broader adoption continues, introducing additional cryptocurrency ETFs is logical and expected,” says Linkha. “These ETFs will mark a natural step in market development and contribute to market stabilization by injecting additional liquidity.”

He adds that crypto ETFs will be highly correlated to the spot BTC market, and crypto ETFs are just another path for crypto trading. If Trump signs an Executive Order allowing banks to trade and hold crypto, banks may become direct competitors to ETFs, predicts Linkha.

 “ETFs were initially highly anticipated due to their simplicity, allowing traditional financial investors to gain exposure to cryptocurrency through their brokerage accounts without dealing with the complexities of blockchain technology. If banks enter the market, they could offer safe and straightforward alternatives to ETFs, providing an equally simple mechanism for investing in crypto assets.”

As well, banks entering crypto markets will probably drive additional inflows as retail investors will have more choices beyond ETFs and crypto exchanges.

Commenting on the Trump coin ($TRUMP), which has rocketed in value, Lienkha had this to say:

“Forecasting the performance of meme coins is inherently challenging, as they lack a fundamental basis and are primarily driven by emotional trading and speculative behavior. However, over time, they may evolve into more substantial assets. There is potential for such tokens to develop practical use cases or utility in the future, which could lend them greater legitimacy. For now, meme coins occupy a niche as a highly speculative and high-risk category of investment. While their current valuation dynamics are unpredictable, their existence highlights the cryptocurrency market’s diverse and rapidly evolving nature.”



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