As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I find myself both excited and cautious about the impending wave of financial products aimed at the crypto market under President Trump’s second term.
As President-elect Donald Trump prepares for his second term in the White House starting January 20, it’s been reported by Bloomberg that Wall Street is gearing up to introduce a fresh surge of financial instruments aimed at investing in the crypto market.
‘Wild West’ Era For Crypto ETFs
As Trump’s second term approaches, executives and legal experts in the Exchange Traded Fund (ETF) sector are devising various tactics to attract a broad spectrum of investors by creating a diverse portfolio of investment options.
It’s predicted that the newly-developed crypto Exchange Traded Funds (ETFs) will come in different shapes and sizes. Some might concentrate on a wide range of digital currencies, potentially using methods like leverage, options, or advanced quantitative techniques.
Experts believe that the new management at the United States Securities and Exchange Commission (SEC), under President Trump, may show a greater openness towards these groundbreaking products compared to the preceding administration.
In simpler terms, Aisha Hunt, who is a principal at the law firm Kelley Hunt, has referred to the current situation in the ETF industry as being reminiscent of the “Wild West” era, implying that there may be an increase in intricate, leveraged and inverse crypto-related products.
Despite Trump initially branding Bitcoin as a “scam” during his presidency, his post-office enthusiasm towards digital assets has significantly altered perspectives. The anticipated adjustments in the SEC are thought to align more closely with industry needs, which could open up possibilities for a wider variety of products, including those associated with alternative cryptocurrencies (altcoins).
Multiple companies have put forward plans for exchange-traded funds (ETFs) that follow digital assets such as Solana, XRP, Litecoin, and Hedera to the Securities and Exchange Commission (SEC). These proposals seem promising, particularly considering the expected regulatory stance of the new administration.
Mainstream Interest In ‘Bitcoin-Plus’ Products
Sui Chung, the leader of crypto index provider CF Benchmarks, has observed a marked increase in interest following Donald Trump’s election win, particularly in what he refers to as “Bitcoin-plus” investments. Chung explains that these investment options provide exposure to Bitcoin but also include extra elements intended to yield unique returns.
On its debut trading day, the notional volume for contracts on BlackRock’s iShares Bitcoin Trust (IBIT) surged to almost $2 billion, spread across 354,000 contracts, showcasing a significant level of investor interest.
On December 2, Cboe, a platform for trading derivatives of digital assets and securities, will introduce the initial index options that are cash-settled based on Bitcoin’s price fluctuations.
John Davi, the head of investments at Astoria Portfolio Advisors, has shown an inclination towards incorporating Bitcoin within his ETF-managed portfolios, particularly when the cryptocurrency undergoes a price adjustment or dip.
David imagines creating various products that allow access to multiple cryptocurrencies through “investment strategies based on rules,” much like the methods used for picking stocks traditionally.
In the long run, Shiliang Tang, head of Arbelos Markets, anticipates that innovative approaches will persistently be integrated into Cryptocurrency Exchange Traded Funds (ETFs), resulting in offerings like leveraged ETFs, funds specializing in alternative coins, and mixed portfolios containing various digital assets.
Currently, the top cryptocurrency on the market is being traded at approximately $95,500, and it has experienced a decrease of 1.2% over the past 24 hours.
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2024-11-26 14:42