On the 1st of October, Bitcoin [BTC] and Ethereum [ETH] exchange-traded funds (ETFs) saw a significant decrease in assets. BTC ETFs experienced withdrawals amounting to $242.6 million, while ETH ETFs recorded outflows of $48.6 million.
Potential Influence of Trump on SOL and XRP ETFs
Recent discussions have surfaced indicating that the upcoming U.S. presidential election could have implications for crypto ETFs, particularly those connected to Ripple [XRP] and Solana [SOL]. There is speculation that a victory by Donald Trump might impact the approval and performance of these digital asset ETFs in the future.
A thread on X (previously Twitter) by Bloomberg analyst Eric Balchunas underscored the challenges faced by new cryptocurrency ETFs, including those for SOL and XRP, under the strict oversight of SEC Chairman Gary Gensler. Balchunas highlighted how Gensler’s strong stance on the crypto market has complicated the approval process for these ETFs, affecting major players like Binance and Coinbase.
Mentioning Trump’s promise to dismiss Gensler when assuming office, Balchunas stated on the 2nd of October,
“You’ve heard of the Fed Put. This is like the Trump Call. Applications for XRP or Solana or other altcoins resemble a low-cost call option on a Trump victory, as Genz will be gone, and anything is possible. If Harris wins, there is no chance of approval, and the ‘call’ becomes worthless.”
Bitwise’s Initiative to Launch XRP ETF
Following Bitwise’s recent move to introduce an XRP ETF, marked by the formation of a trust entity in Delaware, the timing is crucial given the SEC’s approaching deadline to challenge Judge Torres’ ruling regarding secondary XRP sales not being classified as securities.
Insights from Executives
With regards to the same, Alex Thorn, Head of Firmwide Research at Galaxy Digital, shared further insights.
Another X user posed a vital question to Balchunas, asking,
“If there hasn’t been demand for an Ethereum ETF, why would there be for an XRP ETF?”
In response, Balchunas defended the position.
Future Scenarios for Trump and Harris
Amidst the evolving political landscape captured in Polymarket data, where Kamala Harris leads Trump by a small margin, analysts at VanEck remain optimistic about Bitcoin’s resilience. Mathew Sigel believes that, regardless of the 2024 U.S. election outcome, Bitcoin will largely remain unaffected. However, he suggested that a Kamala Harris administration might create more favorable conditions for Bitcoin’s growth compared to a Trump presidency.
With only 33 days left until the election, the industry awaits the results and how they will impact the crypto sector.