White House Bitcoin Support Sparks This ETF

On the back of the White House’s cryptocurrency confab, which brought together policymakers and leaders of the digital asset community, Bitcoin notched a double-digit gain over August 19-20 — a rally that pumped new life into the largest digital currency. It remains to be seen if this Bitcoin bounce is durable, but if so, aggressive traders may want to examine the Direxion Daily Bitcoin Bull 2X ETF (BTCU).

Launched in May, it attempts to deliver 200% of the daily performance of the largest basic spot Bitcoin ETF. Bitcoin and BTCU could remain in the spotlight as the White House continues its long-standing push to advance the Clarity Act. The Clarity Act seeks to position the U.S. as the global cryptocurrency leader.

Among the reasons to keep eyes on the leveraged ETF is the enthusiasm some key crypto execs took away from the White House meeting. For example, Coinbase Global (COIN) CEO Brian Armstrong told CNBC he’s “pretty optimistic” that the Clarity Act will garner the 60 votes needed to get through the Senate. If that happens, BTCU could be an ideal way for traders to play that event forward.

Betting on BTCU There are other potential tailwinds for the cryptocurrency complex and BTCU. This includes the Securities and Exchange Commission’s (SEC) recently proposed “Regulation Crypto Assets”. The proposal seeks to provide exemptions allowing certain crypto investment contracts to raise up to $5M over four years or $75M annually. In addition, it would offer a conditional safe harbor and other measures aimed at creating a clearer framework,” according to Seeking Alpha.

How legislative and regulatory proposals unfold in Washington remains to be seen, but it’s clear that the White House is prioritizing U.S. crypto advancement. This could be enough to create potential market catalysts that traders can leverage through BTCU. Given that and the headline-driven nature of leveraged ETFs in mind, traders may also want to keep watch on the September 15 procedural vote in the Senate — it could very well determine the fate of the Clarity Act.

One thing is already clear: President Trump wants the bill passed. “It’s a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else.” Trump told reporters at the conference. He also added that the U.S. was at the “very beginning of a revolution” in finance.”