There may be a shift in Capitol Hill sentiments on bitcoin and exchange-traded funds.
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Sal Gilbertie, CEO and CIO of Teucrium, told CNBC’s “ETF Edge” that, in contrast to the Biden administration, regulators are become “friendlier” under President Donald Trump.
Gilbertie stated on Monday, “The climate in Washington is totally different at the moment.” “It’s more welcoming towards innovation especially in crypto and that’s a relief for us.”
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According to the fund’s website, Gilbertie’s company manages the Teucrium 2x Long Daily XRP ETF (XXRP), which seeks to double the daily performance of the cryptocurrency XRP. Since its inception on April 7, the ETF has increased 96% as of Tuesday’s close.
According to Gilbertie, regulators’ reaction has altered, but Teucrium’s function in pitching money has remained the same.
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“The steps that we take to list the fund are the same, but there’s no animosity anymore,” said Gilbertie. “We’re not feeling like they’re antagonistic, that they’re looking for a problem, that they’re looking to actually go against whatever it is you’re trying to do.”
Gilbertie stated that investors must be astute and “understand what they’re owning” as new products enter the market, in reference to the debate about regulating emerging market participants such as ETFs and cryptocurrency.
“The U.S. markets are the safest markets in the world for a reason, because we have tight and very thorough regulations,” he stated. “But I think investors always need to be learning.”
Investors with a high risk tolerance are the target market for the Teucrium 2x Long Daily XRP ETF. The company warned in a news release this month that the ETF might not be appropriate for all investors and that it “carries distinct risks” because of its use of leverage.
Eric Pan, the CEO of the Investment Company Institute, is also inspired by what he observes in Washington, especially the Securities and Exchange Commission’s interactions with business leaders. He believes that the debate over cryptocurrency legislation is still in its early phases.
“Groups like mine at the ICI have opinions that they [regulators] are quite interested in hearing. They wish to speak with member companies. In the same interview, Pan stated that this is a “really positive step” and that they want to comprehend what they’re seeing in the marketplace.
According to Pan, the process of launching cryptocurrency-related ETF products is similar to that of ETFs that incorporate conventional equities, bonds, and commodities. He stated that regulatory stability is crucial in both situations to reduce risk for businesses and investors, but he also wants to see space for innovation.
“We like the idea that, through competition, firms [and] our members can come up with new products, try them out, see if there’s an interest in them,” Pan stated. “That’s really what we’ve been advocating for, both on Capitol Hill and with the SEC.”
Only a few weeks have passed since President Trump signed the GENIUS Act, which regulates stablecoins. One kind of cryptocurrency that is linked to a fiat currency, such as the US dollar, is called a stablecoin. The law is a significant legislative victory for cryptocurrencies and advances Trump’s objective of making the United States the “crypto capital of the world.”
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Teucrium president on the strategy behind the XXRP ETF and crypto’s next steps
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ETF Edge: The crypto explosion and how Washington is regulating the industry
