Trump, Biden Court Crypto as Election Season Looms

• Trump, Biden change tone on crypto: Donald Trump has promised to make the US a leader in digital assets during recent campaign events. And President Joe Biden’s aides have responded by reaching out to major players in the crypto market.
• Ether's price surges to nearly $4k, then pulls back: After the SEC approved eight Ether ETFs last week, analysts expect anticipated inflows to be 15-30% of Bitcoin ETF levels. So far, the price of ether has remained relatively flat since the SEC approved ETH ETFs.
• Former FTX executive gets jail time: Ryan Salame, the former CEO of FTX Digital Markets, received a seven-and-a-half year prison sentence and significant financial penalties for his involvement in unlawful political contributions and operating an unlicensed money transmitting business.
• Argentina's securities regulator meet with El Salvador's digital assets commission to discuss strategies for cryptocurrency adoption: Argentina is seeking to leverage El Salvador's experience as the first country to adopt Bitcoin as legal tender.

Trump, Biden Court Crypto as Election Season Looms

Donald Trump and President Joe Biden have both recently extended an olive branch to the crypto industry, signaling that both candidates want to court major players in the digital asset space ahead of what’s expected to be a tightly contested November election.

Prediction markets indicate that Trump's strong pro-crypto stance may be bolstering his lead over Biden. At a recent event, Trump pledged to commute the sentence of Silk Road founder Ross Ulbricht and promised to position the US as a leader in digital assets. As a result, Biden's chances of re-election, according to PredictIt, have reportedly dropped from 46% to 44%, while Trump's odds have improved by two points on Polymarket, now standing at 56%.

Aides for Biden’s re-election campaign have contacted major crypto industry players for help guiding crypto policy and the broader community. That marks a major shift for Biden, who has opted to mostly stay away from thorny issues facing digital assets while allowing SEC chair Gary Gensler to pursue a policy viewed by many as hostile to the crypto space.

Trump had previously said he didn’t like Bitcoin, in part because it competed against the US dollar. The shift for both candidates highlights the potential impact of digital asset policies on the upcoming election.

Learning the Basics of Spot BTC ETFs

A spot bitcoin ETF is a liquid investment fund that ties its value to the price of BTC.

Investors can purchase spot BTC ETFs through the same traditional brokerages where they invest in stocks and bonds. This offers a simple, low-cost way to gain exposure to BTC price movements without opening a digital wallet and buying BTC directly.

In January, the US Securities and Exchange Commission (SEC) approved the first 11 spot BTC ETFs, opening up the space to 401Ks, IRAs, and other traditional investment vehicles. Since the approval, the price of BTC has jumped, signaling a return of investor confidence in the market.

How exactly do they work? And what are their pros and cons? Let’s explore.

ICYMI: Earlier this week, Gemini returned $2.18 billion to users of Earn. Read the full story here.

Onward and Upward,

Team Gemini