Bitcoin surpassed a record over the last few days, spurred on by results from the U.S. Presidential election. A crypto-friendly Trump administration has boosted the outlook for the space in a way that could still be underrated. Recent survey data from CoinShares highlighted growing concern from potential investors about crypto regulations. If that is addressed, the space could be poised for significant growth.
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CoinShares’ October 2024 Digital Asset Fund Manager Survey asks crypto managers a series of questions. That helps the firm take the temperature of the crypto world on a monthly basis, offering intriguing insights.
For example, bitcoin surged even further above rival digital assets in October, with 40% of respondents now identifying bitcoin as having the “most compelling growth outlook.” Falling inflation, meanwhile, saw movement out of digital assets, with portfolios’ weighting therein dropping from 1.7% to 1%. Intriguingly, more managers also cited value and diversification as well as client demand as reasons to add digital assets to a portfolio.
The most important takeaway, however, speaks to fears around crypto regulations. While it may have bubbled up to the top of respondents’ minds “because” of the election, either way, it counts. Some 40% of respondents pointed to crypto regulation as the primary obstacle to investing in digital assets in the October survey, compared to just 20% before.
However, that may hide a positive factor for crypto. That number also saw a significant drop in managers citing “lacking fundamentals” and “corporate restrictions” as their main obstacles. More survey respondents citing regulation suggests that crypto and digital assets may be winning over managers on merits. Bureaucracy, instead, stands in the way. Should that be the case, the Trump administration’s potential further deregulation of the space could kick it into overdrive.
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