These crypto ETFs are 'call options' on the US elections
The US presidential election on Nov. 5 could significantly affect numerous proposed cryptocurrency exchange-traded funds (ETFs) pending regulatory approval. In 2024, asset managers filed many applications to list ETFs focusing on altcoins like Solana, XRP, and Litecoin, alongside planned crypto index ETFs. According to Eric Balchunas, an ETF analyst, the election's outcome is crucial for crypto ETF issuers. Republican nominee Donald Trump advocates for making the US the ‘crypto capital of the world,’ while Democrat Kamala Harris has been less vocal on crypto issues. Under President Biden, the SEC has taken a tough regulatory stance against the crypto industry, resulting in around 100 enforcement actions. If Trump wins, experts expect a surge in ETF approvals; if Harris wins, progress may stall. Recent filings for Solana ETFs are underway, but uncertainties remain regarding SEC perceptions of altcoins as securities. Currently, the SEC has only authorized Bitcoin and Ether for ETF inclusion, but as market demands evolve, experts anticipate a future shift to crypto index ETFs.
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