Following Donald Trump’s election victory on Tuesday, members of the crypto community are celebrating a renewed sense of optimism for their ETF aspirations. A change in political leadership is seen as a potential turning point for the approval of cryptocurrency ETFs focused on altcoins such as Solana, XRP and Litecoin.
Solana Gains Ground in ETF Approval Race
Unlike the Biden administration, which has targeted digital assets with ongoing enforcement actions and a hostile regulatory environment, President-elect Trump has embraced the industry important promises to stimulate growth in the emerging financial sector.
Trump’s pro-crypto stance has encouraged Wall Street to move forward with it ETF applications which previously seemed impossible to succeed. As the US Securities and Exchange Commission (SEC) receives more requests to track currencies XRP, Solana and Litecoin, there is a clear sense of optimism in the air.
Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, noted that “these altcoin ETFs will be dead on arrival if Harris wins, but with Trump, at least they have a fighting chance.” While he stresses that success is not guaranteed, regulatory hurdles appear to be weaker under the new administration.
The cryptocurrency market was boosted by the recent approval of ETFs holding Bitcoin and Ethereum, which attracted a lot of attention. investment-over $24 billion in Bitcoin revenue alone.
This momentum is expected to extend to altcoins, especially Solana, which has gained a lot of interest from the center due to its competitive position against Ethereum.
Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, believes that the Solana ETF is likely to receive approval, citing the token’s strong performance and clear narrative. In contrast, XRP is facing challenges as many investors find its use to be poorly understood.
Trump’s Election Spurs Crypto Market Rally
Bitcoin, which is often seen as a “Trump trade,” has hit highs above $76,000 on Thursday, reflecting optimism about the potential for good profits. regulatory environment.
Analysts from Bernstein predict that regulatory changes under the Trump administration could increase Bitcoin’s value to $200,000 by the end of 2025.
During his campaign, Trump shifted from skepticism to full support of cryptocurrencies, promising to replace SEC Chairman Gary Gensler with regulators more sympathetic to digital assets.
However, the actual influence Trump may have on the SEC, the independent regulatory body, remains uncertain. Stephane Ouellette, founder and CEO of FRNT Financial, he revealed that although the SEC may adopt a crypto-friendly approach, its bureaucratic nature makes it difficult to predict the results.
Gensler’s expected departure has already fueled a rally in cryptocurrencies that were previously classified as “unregistered securities.” Tokens such as Uniswap (UNI) and Polygon (POL) saw price increases of 38% and 20%, respectively, in the days following the election results, surpassing Bitcoin’s 14% rise.
I election results and had a positive impact on ETH, which is up 21% since the election. Investors are hoping for a favorable regulatory environment that could lead to greater adoption and success of Ether ETFs, which have not enjoyed the same level of enthusiasm as Bitcoin ETFs.
However, the uncertainty surrounding whether stake yields are considered assets or securities complicates the development of Ether ETFs.
Jesper Johansen, CEO of Ethereum staking platform Northstake, emphasized that $6 billion in Ether ETFs are currently not at stake, representing a significant missed opportunity for investors.
At the time of writing, Solana, which is now the fourth largest cryptocurrency in the market after overtaking Binance Coin (BNB) in terms of market capitalization earlier this week, is trading at $196, up 15% for the week.
Featured image from DALL-E, chart from TradingView.com
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