- ETF Analysts are weighing the prospect of XRP and SOL ETF approval.
- An administrative change might favor other crypto ETF products.
Bloomberg analyst Eric Balchunas recently emphasized Donald Trump’s influence on the possible launch of XRP and Solana Exchange-Traded Fund (ETF) products in the US. Notably, Balchunas claims a potential XRP and Solana (SOL) ETF is hinged on Trump’s victory in the upcoming US Presidential election.
Donald Trump Win Key For XRP and Solana ETFs
Balchunas’ comments come before the US Securities and Exchange Commission (SEC) deadline to file an appeal against a July 2023 ruling. Judge Analisa Torres ruled in the ongoing Ripple vs. SEC case that secondary sales of XRP on exchanges are not securities.
You’ve heard of the Fed Put. This is like the Trump Call.. filings for XRP or Solana or any other alt coins are basically like a cheap call option on a Trump win as Genz will be gone and anything’s poss. Harris wins no way these get approved, and the “call” expires worthless. https://t.co/mkpCbqEuQ4
— Eric Balchunas (@EricBalchunas) October 1, 2024
Galaxy Digital’s Head of Research, Alex Thorn, noted that the possibility of an XRP ETF launch drops to near zero if the SEC eventually appeals the ruling. Balchunas, however, has expressed a different opinion in a series of posts on X.
The analyst emphasized the difficulty in approving new crypto ETFs due to strict rules implemented by the US SEC. He noted that former president Donald Trump’s win could see current SEC Chairman Gary Gensler being replaced. Balchunas believes Gensler’s dismissal will likely pave the way for approving ETFs for altcoins such as Solana and XRP.
Balchunas further highlighted that there would be no possible Solana or XRP ETF launch if Kamala Harris beats Donald Trump. However, following Kamala Harris’s recent shift in support for crypto, there is hope for potential approval of the ETFs.
As noted in a CNF report, Harris announced intentions to promote innovative technologies such as Artificial Intelligence (AI) and digital assets. Moreover, Anthony Scaramucci confirmed that Harris is developing policies that align with recent calls for a crypto roundtable by a group of DeFi leaders.
As CNF reported earlier, Balchunas’ comments follow a recent spot in the XRP ETF filing from renowned asset manager Bitwise.
CNF learned that the filing was incorporated on September 30, 2024, while it named CSC Delaware Trust Company as the registered agent. This move follows previous applications from major investment firms like BlackRock and Fidelity, which pioneered the crypto ETF race last year.
Solana ETF Faced With Challenges
Like XRP ETFs, the Solana ETF push might also see a rough path ahead under the current SEC administration. Since Bitcoin and Ethereum ETFs were approved, experts believe the SEC will be reluctant to approve additional crypto-based investment products.
Nate Geraci, President of The ETF Store, says the chances of a Solana ETF approval within the next year or two remain slim under the current administration. He also pointed to US politics as key to the approval of these ETFs.
However, VanEck’s Head of Digital Assets Research, Matthew Sigel, remains optimistic about Solana ETF approval. He cited Solana’s Commodity status and growing decentralization as important factors in getting the ETF approval from the SEC.