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.
