Trump’s Win: Impacts on XRP and Solana ETF Regulation Ahead?

Bitcoin and Ethereum ETFs saw notable outflows on October 1st, amounting to millions.
The results of the U.S. elections may impact the regulatory framework surrounding XRP and SOL ETFs.

Bitcoin [BTC] and Ethereum [ETH] exchange-traded funds (ETFs) witnessed noteworthy outflows on October 1st.

BTC ETFs experienced withdrawals totaling $242.6 million, while ETH ETFs saw outflows of $48.6 million.

Can Trump enhance the potential for SOL and XRP ETFs?

In light of the volatile ETF environment, recent discussions suggest that the results of the upcoming U.S. presidential election could influence the regulatory framework for crypto ETFs, particularly those related to assets like Ripple [XRP] and Solana [SOL].

There are speculations that a potential win for Donald Trump might affect the future approvals and performance of these digital asset ETFs.

In a recent discussion on X (formerly Twitter), Bloomberg analyst Eric Balchunas underscored the hurdles faced by emerging cryptocurrency ETFs, such as those for SOL and XRP, amid the stringent regulatory scrutiny by SEC Chairman Gary Gensler.

Balchunas pointed out that Gensler’s rigorous approach to the crypto market has hindered the approval process for these ETFs, affecting major industry players like Binance and Coinbase.

Reiterating Trump’s promise to dismiss Gensler if elected, Balchunas mentioned in a post on October 2nd,

“You’ve heard of the Fed Put. This is like the Trump Call… filings for XRP or Solana or any other altcoins are basically like a cheap call option on a Trump win as Gensler will be gone and anything’s possible. If Harris wins, there’s no way these get approved, and the ‘call’ expires worthless.”

Bitwise aims to launch XRP ETF

This remark follows Bitwise’s recent initiative to create an XRP ETF, signified by the registration of a trust entity in Delaware.

The timing is critical, coinciding with the SEC’s approaching deadline to appeal Judge Torres’ ruling, which declared that secondary XRP sales on exchanges do not count as securities.

Adding further context, Alex Thorn, Head of Firmwide Research at Galaxy Digital, observed,

Source: Alex Thorn/X

Nevertheless, another X user posed a significant question to Balchunas, stating,

“If there has been no demand for an Ethereum ETF, why would there be demand for an XRP ETF?”

In response, Balchunas defended,

Source: Eric Balchunas/X

What lies ahead for Trump and Harris?

Despite the ongoing political dynamics reflected in Polymarket data, showing Kamala Harris narrowly leading Trump in votes, analysts at VanEck maintain confidence in Bitcoin’s durability.

Source: Polymarket

Mathew Sigel opines that, irrespective of the results of the 2024 U.S. elections, Bitcoin is likely to remain relatively unscathed.

Nonetheless, he indicated that a Kamala Harris administration might create more conducive conditions for Bitcoin’s growth compared to a Trump-led one.

With just 33 days left until the election, it will be fascinating to observe the outcome and its repercussions on the crypto industry.