Donald Trump Win Key For XRP & Solana ETFs, Bloomberg Analyst

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As a seasoned crypto investor with a knack for spotting regulatory trends, I find myself closely watching the unfolding events surrounding XRP and Solana ETFs. The recent insights by Bloomberg analyst Eric Balchunas about the potential impact of the 2024 U.S. presidential election on these digital assets have piqued my interest.

According to Bloomberg analyst Eric Balchunas, a possible win by Donald Trump in the forthcoming U.S. presidential election might impact the future of Exchange-Traded Funds (ETFs) based on Ripple (XRP) and Solana.

This remark refers to Bitwise’s recent actions towards establishing an XRP exchange-traded fund (ETF), which involves registering a trust entity in Delaware. At the same time, it has moved ahead of the U.S. Securities and Exchange Commission’s (SEC) deadline for appealing Judge Torres’ decision that trading of XRP as secondary sales on exchanges is not considered securities.

Donald Trump Win Key For XRP, Solana ETFs

In a recent discussion on X (originally Twitter), Eric Balchunas, analyst at Bloomberg, highlighted an issue: under the current SEC leadership headed by Gary Gensler, it’s been challenging to get approval for new crypto ETFs like those for SOL and XRP. He emphasized that Gensler has adopted a tough stance on the cryptocurrency market, which has had significant implications for major players such as Binance and Coinbase.

The Fed Put is similar to a Trump Call. Investing in cryptocurrencies like XRP, Solana, or others can be seen as a low-cost bet on a Trump victory, considering Gen Z will no longer be in power. If Trump wins and these coins are approved, the investment could pay off significantly. However, if Harris wins, these investments would likely be futile, much like an expired call option.
— Eric Balchunas (@EricBalchunas) October 1, 2024

However, Balchunas notes that Donald Trump’s victory in the presidential election could lead to Gary Gensler’s replacement as SEC chairman, potentially allowing for less stringent regulations and the approval of ETFs for digital currencies like Solana and XRP. This scenario is likened by Balchunas to a “Trump Call,” suggesting that those seeking approval for XRP or Solana ETFs are essentially wagering on Trump’s success, as they anticipate his administration might appoint a new SEC chair who would be more inclined to approve such funds.

It’s predicted that if Kamala Harris wins against Donald Trump, there won’t be any changes to current regulations, meaning opportunities for these ETFs might disappear and calls on related filings would prove pointless. However, due to Kamala Harris’ recent change in stance and promise to uphold the US lead in Blockchain and AI technology, there remains a glimmer of hope for potential ETF approvals. Furthermore, Anthony Scaramucci has stated that Harris is working on crypto policies, which coincides with DeFi leaders’ recent demands for a crypto roundtable.

Bitwise Takes Steps Toward XRP ETF

In simpler terms, Bitwise has made significant progress towards offering an exchange-traded fund (ETF) focused on XRP by establishing a trust company in Delaware. This move follows similar applications from prominent financial institutions like BlackRock and Fidelity, who have previously applied for Bitcoin and Ether ETFs.

Regarding recent events, it’s still unclear if approval will be granted. Notably, the SEC has until October 7, 2024, to challenge Judge Torres’ July decision, which labeled secondary sales of XRP on exchanges as non-securities. Many experts, including former SEC officials, anticipate that the agency might choose to appeal this ruling, thereby potentially prolonging any advancements related to an XRP ETF. This could diminish the potential impact of the Donald Trump effect.

Solana ETF Faces Similar Challenges

Under the current U.S. Securities and Exchange Commission (SEC), the Solana ETF encounters a challenging road ahead. Despite high demand for such investment products, the SEC has shown reluctance to greenlight more cryptocurrency-based ETFs, even after endorsing Bitcoin and Ethereum spot ETFs. Nate Geraci, president of The ETF Store, suggests that under the current administration, it’s unlikely a Solana ETF will be approved in the next year or so.

Similarly, Geraci emphasized that the political climate could significantly influence the approval of these ETFs, particularly based on the outcome of the 2024 U.S. presidential election. If Donald Trump wins another term, there might be a shift in the SEC leadership, potentially leading to more lenient crypto regulations. Conversely, if Kamala Harris secures the presidency, no changes are expected, and the approval of Solana and XRP ETFs is likely to remain elusive.

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2024-10-02 04:02