The wave of entries to include alternative cryptocurrency exchange-traded funds (ETFs) in the United States are seen as “call options for a Trump victory” in the upcoming presidential election, according to Eric Balchunas, an ETF analyst at Bloomberg Intelligence, on October 25.
Balchunas mentioned at the Plan B Forum conference in Lugano, Switzerland that if Trump wins, he will likely appoint a more libertarian chairman for the Securities and Exchange Commission (SEC).
He also stated that if Kamala Harris wins, it may not be favorable for ETFs for a few years, implying a different regulatory approach.
Bitcoin (BTC) and ether (ETH) ETFs were listed in the US in January and July after facing resistance from the SEC for years.
Now, issuers are seeking to register ETFs for other tokens like Solana (SOL) and XRP. Regulators were asked by Cboe stock exchange in July to list VanEck and 21Shares’ planned SOL ETFs.
In October, ETF issuers Canary Capital and Bitwise both filed for proposed XRP ETFs. Canary also submitted for registration a Litecoin (LTC) ETF on October 15.
In the upcoming November election, Republican candidate Donald Trump, who aims to make America the “crypto capital of the world,” is running against Democrat Kamala Harris, who has not been vocal about the sector.
Vice President Harris has shown more support for cryptocurrency compared to President Joe Biden but falls short of Trump’s pro-industry stance according to Galaxy Research on October 14.
Under Biden’s administration, the SEC has taken a strict regulatory approach on cryptocurrencies, resulting in numerous regulatory actions against industry companies.
In July, Trump pledged to replace Gary Gensler, the current SEC chairman, if he wins the election.
Cryptocurrency funds have been a significant part of the 25 largest ETF launches in 2024, with 13 of them attributed to the sector up to August, according to a report on the X Platform by Nate Geraci, president of The ETF Store.
Bitcoin has been a dominant force in the ETF landscape this year, contributing to six of the 10 most successful launches in 2024, as per Geraci’s report.
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