On the 1st of October, there were substantial outflows in Bitcoin [BTC] and Ethereum [ETH] exchange-traded funds (ETFs).
Bitcoin ETFs experienced withdrawals amounting to $242.6 million, while ETH ETFs saw outflows totaling $48.6 million.
Will Trump Drive Growth for SOL and XRP ETFs?
Amidst the fluctuations in the ETF market, there are discussions emerging about how the outcome of the upcoming U.S. presidential election could impact the regulatory environment for crypto ETFs, particularly focusing on assets like Ripple [XRP] and Solana [SOL].
Speculation suggests that a potential win for Donald Trump could influence the approval process and performance of these digital asset ETFs.
Bloomberg analyst Eric Balchunas highlighted the challenges faced by new cryptocurrency ETFs, specifically those for SOL and XRP, under the watchful eye of SEC Chairman Gary Gensler.
Gensler’s strict position on the crypto market has created obstacles in the approval process for these ETFs, affecting major industry players like Binance and Coinbase.
In a recent post on X (previously known as Twitter), Balchunas referenced Trump’s promise to replace Gensler upon assuming office, stating,
“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.”
Bitwise’s Initiative to Launch XRP ETF
In the context of these developments, Bitwise recently made a move to introduce an XRP ETF, marked by the registration of a trust entity in Delaware.
This move is strategically aligned with the upcoming deadline for the SEC to appeal Judge Torres’ ruling, which concluded that secondary XRP sales on exchanges do not constitute securities.
Insights from Industry Executives
Offering further perspectives on this matter, Alex Thorn, Head of Firmwide Research at Galaxy Digital, shared insights,
However, another X user posed a significant question to Balchunas by asking,
“If there has been no demand for Ethereum ETF, why would there be demand for XRP ETF?”
In response, Balchunas defended the rationale.
Future Scenarios for Trump and Harris
Despite the shifting political landscape highlighted in Polymarket data, with Kamala Harris leading Trump in votes by a slight margin, analysts at VanEck maintain confidence in Bitcoin’s resilience.
Mathew Sigel believes that regardless of the 2024 U.S. election outcome, Bitcoin will remain largely unaffected.
However, he acknowledged the potential for a Kamala Harris administration to offer more favorable conditions for Bitcoin’s growth compared to a Trump presidency.
With just 33 days remaining until the election, the crypto sector eagerly awaits the results and the ensuing impact on the industry.