Experts believe that a Kamala Harris presidency could slow down the approval of new crypto ETFs beyond Bitcoin and Ethereum, while a victory for Donald Trump could speed up their approval for assets such as XRP, LTC, and SOL.
Analysts like Eric Balchunas and Nate Geraci suggest that Harris, as a continuation of the perceived crypto-hostile Biden administration, would be reluctant to approve new crypto ETFs.
On the other hand, Donald Trump, who recently adopted a favorable stance towards cryptocurrencies, could facilitate the expansion of crypto ETFs, positively influencing the market and issuers seeking to broaden their offerings.
Could a Kamala Harris Presidency Slow Down the Approval of Crypto ETFs?
As several companies fight for the approval of dedicated crypto ETFs for assets like Ripple’s XRP and Solana’s SOL, experts agree that a Kamala Harris presidency could hinder this ambition. Conversely, a victory for Donald Trump in the upcoming election could disrupt the landscape of crypto ETFs in the United States.
The Regulatory Battleground of Crypto ETFs
Bitcoin and Ethereum ETFs have long been at the center of fierce debates between investment firms and regulators. The approval of these initial products marked a crucial milestone in institutional adoption of cryptocurrencies, and billions of dollars quickly flowed into these newly created funds. But as the industry now looks to integrate new assets into ETFs, including Ripple’s XRP, Litecoin’s LTC, and Solana’s SOL, a Harris presidency could dampen the hopes of issuers looking to expand this offering.
Harris: Towards Strict Regulation of Crypto ETFs?
If Kamala Harris wins the presidential election, experts believe that the expansion of crypto ETFs beyond Bitcoin and Ethereum could be put on hold. Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, is categorical: ‘This will not happen if Harris wins, regardless of the issuer.’
His observation is based on the perceived combative approach of the Biden administration towards cryptocurrencies, a position that Harris, as Vice President and influential figure in this administration, seems willing to extend.
Nate Geraci, President of the ETF Store, shares this opinion and points out that Harris, following in Biden’s footsteps, may not be inclined to approve any other crypto ETFs anytime soon: ‘The Biden administration has generally been hostile to the cryptocurrency sector, and it is likely to continue under Harris.’
Trump: A Potential Ally for the Expansion of Crypto ETFs
In contrast, a victory for Donald Trump could offer an opportunity for a new wave of crypto ETFs. Trump, who has recently adopted a favorable stance towards cryptocurrencies, could facilitate the approval of new products in the market, thus opening the door to funds backed by assets like XRP, LTC, and SOL.
Analysts believe that a win for the former president would give a boost to ETF issuers. According to Balchunas, there would be a ‘decent chance’ that additional products would be approved under a Trump administration. This prediction is strengthened by Trump’s growing support for the crypto sector, as evidenced by his participation in a Bitcoin conference and his recent efforts to include crypto in his political discourse.
The Political Stakes for the Crypto Market
As the presidential election looms, players in the crypto sector are closely following political developments. Donald Trump’s popularity rating reaching 62.4% according to the Polymarket prediction market indicates a favorable turnaround for the former president, who has been engaging with the crypto communities in recent months. His support for projects like DeFi platforms and symbolic visits, such as his stop at a Bitcoin bar in New York, highlights a willingness to integrate this technology into his agenda.
On the other hand, Kamala Harris has recently begun to outline her plans to establish a regulatory framework around cryptocurrencies and digital assets, specifically targeting the African-American community, which is known to be more active in crypto adoption. However, details about how she could support the sector remain vague, leaving uncertainty about the future of crypto ETFs beyond Bitcoin and Ethereum under her leadership.
