These crypto ETFs are ‘call options’ on the US elections
The United States presidential election on Nov. 5 might decide the destiny of greater than a half dozen proposed cryptocurrency exchange-traded funds (ETFs) ready on a inexperienced mild from regulators.
In 2024, asset managers submitted a flurry of regulatory filings to checklist ETFs holding altcoins, together with Solana (SOL), XRP (XRP) and Litecoin (LTC), amongst others.
Issuers are additionally ready on approval for a number of deliberate crypto index ETFs designed to carry various baskets of tokens.
In impact, these filings are “call options on a Trump victory” in the US presidential race, Eric Balchunas, an ETF analyst at Bloomberg Intelligence, mentioned on Oct. 25.
Three in 4 crypto homeowners mentioned a candidate’s crypto coverage will influence how they vote. Source: Gemini
The election pits Republican nominee Donald Trump — who has mentioned he needs to make America “the crypto capital of the world” — in opposition to Democrat Kamala Harris, who has been comparatively quiet on the business.
Under President Joe Biden — Vice President Harris’s boss — the US Securities and Exchange Commission (SEC) has taken an aggressive regulatory stance towards crypto, bringing upward of 100 regulatory actions in opposition to business firms.
“If you see a Trump victory, watch this space, and if you see a Harris victory, just forget about it for a couple of years,” Balchunas mentioned throughout the Plan B Forum convention in Lugano, Switzerland.
Here’s what to anticipate from crypto ETF issuers if Trump wins on Nov. 5.
BTC and ETH lead closely by way of market capitalization. Source: CoinGecko
Altcoin ETFs
In June, fund issuers VanEck and 21Shares every filed an S-1 to register SOL ETFs with the SEC.
On Oct. 30, crypto asset supervisor Canary Capital adopted swimsuit, submitting for a SOL ETF of its personal.
The SEC greenlighted spot Bitcoin (BTC) and Ether (ETH) ETFs to checklist in January and July, respectively.
Even so, “it’s unlikely that the approval of ETH will result in a large wave of approvals” for different forms of crypto ETFs, Ophelia Snyder, co-founder and president of 21.co, informed Cointelegraph in June. 21.co is the proprietor of crypto ETF issuer 21Shares.
The SEC has repeatedly asserted that SOL — not like BTC and ETH — is a safety, however plans for a SOL ETF itemizing are “still in play,” Matthew Sigel, VanEck’s head of digital property analysis, mentioned in August.
“VanEck believes SOL is a commodity, much like BTC and ETH,” Sigel mentioned. “We remain committed to advocating this position […] to the appropriate regulators.”
Meanwhile, in October and November, Canary Capital, Bitwise and 21Shares every filed for proposed XRP ETFs. Canary Capital additionally filed to register a spot LTC ETF.
GDLC’s holdings. Source: Grayscale.
Crypto Index ETFs
On Oct. 29, securities alternate NYSE Arca requested the SEC for permission to checklist shares of Grayscale Digital Large Cap Fund (GLDC).
“[T]he proposed rule change, if adopted, would represent the first national securities exchange ruleset permitting the listing and trading of shares of multi-crypto asset [ETFs],” Grayscale mentioned.
The fund holds a crypto index portfolio comprising BTC, ETH, SOL, XRP and Avalanche (AVAX).
“The next logical step is index ETFs because indices are efficient for investors — just like how people buy the S&P 500 in an ETF. This will be the same in crypto,” Tischhauser mentioned.
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