Following Donald Trump’s election victory on Tuesday, members of the cryptocurrency community celebrated with a renewed sense of hope about their ETF ambitions. The change in political leadership is seen as a potential turning point for the approval of altcoin-focused cryptocurrency ETFs like Solana, XRP And Litecoin.
Solana leads in race for ETF approval
Unlike the Biden administration, which has approached digital assets with persistent enforcement actions and a hostile regulatory environment, President-elect Trump has embraced the industry by… Key promises To stimulate growth in the emerging financial sector.
Trump’s pro-crypto stance has encouraged Wall Street to move forward ETF applications Which previously seemed unlikely to succeed. With the US Securities and Exchange Commission (SEC) receiving numerous requests for funds to track XRP, Solana, and Litecoin, there is a definite sense of optimism in the air.
Eric Balchunas is a senior ETF analyst at Bloomberg Intelligence. male “These altcoin ETFs will be pretty much dead on arrival if Harris wins, but with Trump, they at least have a fighting chance.” Although he stressed that success is not guaranteed, the regulatory obstacles seem less difficult under the new administration.
The cryptocurrency market has been buoyed by the recent approval of ETFs containing Bitcoin and Ethereum, which have attracted a significant amount of attention. investment– More than $24 billion in net inflows into Bitcoin alone.
This momentum is expected to extend to altcoins, especially Solana, which has gained significant institutional interest due to its competitive position against Ethereum.
Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, believes Solana ETFs are likely to gain approval, citing the token’s strong performance and clearer narrative. In contrast, XRP faces challenges as many investors find its use case less understood.
The election of Trump sent the cryptocurrency market soaring
Bitcoin, often viewed as a “Trump deal,” reached new highs above $76,000 on Thursday, reflecting optimism surrounding the potential for favorable gains. Regulatory environment.
Analysts from Bernstein predict that regulatory changes under the Trump administration could push the price of Bitcoin to $200,000 by the end of 2025.
During his campaign, Trump moved from skepticism to full support of cryptocurrencies, promising to replace SEC Chairman Gary Gensler with regulators more friendly to digital assets.
However, the actual impact Trump may have on the Securities and Exchange Commission, an independent regulatory body, remains uncertain. Stephane Ouellette, Co-Founder and CEO of FRNT Financial, He pointed out Although the SEC may adopt a more favorable approach to cryptocurrencies, its bureaucratic nature makes it difficult to predict outcomes.
Gensler’s expected departure has sent prices of cryptocurrencies previously classified as “unregistered securities” soaring. Coins such as Uniswap (UNI) and Polygon (POL) saw price increases of 38% and 20%, respectively, in the days following the election results, outpacing Bitcoin’s 14% rise.
the Election results It also positively impacted ETH, which is up 21% since the election. Investors are hoping for a more favorable regulatory environment that could lead to greater acceptance and success for Ether ETFs, which have not enjoyed the same level of enthusiasm as Bitcoin ETFs.
However, the uncertainty surrounding whether signature returns are classified as commodities or securities complicates the development of Ethereum ETFs.
Jasper Johansen, CEO of Ethereum betting platform Northstake, highlighted that $6 billion of Ethereum ETFs are currently unstaken, representing a major missed opportunity for investors.
At the time of writing, Solana, which is now the fourth largest cryptocurrency on the market after overtaking Binance Coin (BNB) in terms of market capitalization earlier this week, is trading at $196, up 15% on the week.
Featured image of DALL-E, chart from TradingView.com
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