Originally published on: November 04, 2024
The upcoming United States presidential election scheduled for Nov. 5 is not just about politics – it could also have a significant impact on the cryptocurrency market. Several proposed cryptocurrency exchange-traded funds (ETFs) are currently awaiting regulatory approval, and their fate may be closely tied to the election results.
In 2024, a wave of asset managers filed regulatory submissions to launch ETFs holding various altcoins such as Solana, XRP, and Litecoin. Additionally, there are plans for crypto index ETFs that would offer a diverse range of tokens to investors.
According to Eric Balchunas, an ETF analyst at Bloomberg Intelligence, these filings can be seen as “call options on a Trump victory” in the presidential race. The election pits Republican nominee Donald Trump, who has expressed interest in making the US the “crypto capital of the world,” against Democrat Kamala Harris, who has been less vocal about the industry.
A survey found that three out of four crypto owners consider a candidate’s crypto policy when voting, underscoring the importance of the election for the crypto community.
If Trump were to win, we could expect further developments in the crypto ETF space. VanEck and 21Shares have already filed for SOL ETFs, and Canary Capital recently followed suit with its own submission.
The SEC has approved spot Bitcoin and Ether ETFs earlier this year, but the situation with other cryptocurrencies like SOL remains uncertain. Despite regulatory challenges, issuers are optimistic about the potential for expanding the crypto ETF market.
Apart from SOL, ETFs for XRP and Litecoin are also in the pipeline, indicating that the market is gearing up for potential changes post-election.
In a significant move, NYSE Arca has requested permission to list shares of the Grayscale Digital Large Cap Fund (GLDC), which includes a portfolio of major cryptocurrencies such as BTC, ETH, SOL, XRP, and Avalanche.
As the election date approaches, all eyes are on the outcome and its implications for the cryptocurrency market. Keep an eye on these crypto ETFs as they could provide interesting opportunities for investors depending on the election results.
