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Some companies have come forward by applying for Hedera, XRP and solana ETFs.
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President-elect Donald Trump has promised a favorable environment for crypto assets.
The change of course in the economic policy of the United States, with the arrival of Donald Trump to the White House, could be the trigger for an avalanche of applications for Cryptocurrency ETFs that would revolutionize Wall Street.
After the Bitcoin-aprobado-estados-unidos/” target=”_blank” rel=”noreferrer noopener”>bitcoin breakout (BTC) and ether (ETH), Ethereum cryptocurrency, in the exchange-traded fund market many “smaller” digital currencies are now on the radar to receive the same attention.
I would even go beyond the ETFs spot, it would also encompass options, index funds and other cryptocurrency-based financial products.
Trump has expressed his commitment to creating a friendlier regulatory environment for crypto assets. One of the central elements of his proposal is the creation of an advisory board charged with formulating “a transparent regulatory guide for the benefit of the entire industry.”
A regulatory change promoted by Trump
According to Trump, this council would be operational within his first 100 days as presidentand could accelerate the path towards institutionalization of cryptocurrencies through ETFs.
A key component of the Trump proposal is the possible constitution of a Strategic Reserve of Bitcoin (SBR), a measure that could consolidate the digital currency as a key asset within the US economy.
President-elect Donald Trump proposes a favorable policy for digital assets. Source: Britannica.
This initiative not only provides institutional support for the largest digital currency on the market, but also It would also open the doors for other cryptocurrencies to gain ground.
But Trump’s impact on cryptocurrency markets doesn’t stop there. The president-elect has also expressed his intention to replace Gary Gensler, current chairman of the Securities and Exchange Commission (SEC), for a more friendly figure towards digital assets. This decision would be a crucial turning point for the future of cryptocurrency ETFs.
Gensler’s departure and the promise of a new regulatory era
Gensler has been a key figure in the cryptocurrency landscape in recent years. Since arriving at the SEC in 2021, Gensler adopted a strict posture towards cryptoassets, imposing severe regulations and consolidating the SEC’s jurisdiction over the trading of these assets.
His term was scheduled until 2026, but Trump’s arrival at the White House will change the course, with Gensler leaving his position on January 20, 2025, precisely the same day Trump assumes his second term.
Gary Gensler, chairman of the SEC, reported that he will leave office in January 2025. Source: CNBC.
With the departure of Gensler, the door opens for a change of approach. Currently, the name of Teresa Goody Guillén is being heard strongly as Trump’s choice for replace to Genslera lawyer with experience in the cryptocurrency ecosystem, as reported by CriptoNoticias.
Goody Guillén, partner at the BakerHostetler law firm, has expressed her support for regulation that not only promotes the development of the industry, but also favors the creation of innovative financial products such as ETFs.
Less power for the SEC
Trump’s impact on cryptocurrency regulation would also include a change in market oversight.
The president-elect intends to transfer part of the responsibilities regulatory from the SEC to the Commodity Futures Trading Commission (CFTC).
This measure seeks to reduce the power of the SEC in the securities market. cryptocurrencieswhile giving the CFTC a more relevant role in regulating digital asset spot markets and exchanges.
Unlike the SEC, which oversees securities markets, the CFTC has been more focused on futures and derivatives markets, which could imply a new dynamic in the cryptocurrency industry.
The rise of cryptocurrency ETFs
As the regulatory landscape is redefined, companies in the sector are already preparing to take advantage of the potential of cryptocurrency ETFs.
Among the cryptocurrencies that could join bitcoin and ether in spot ETFs, names such as solana (SOL), Ripple’s XRP, Polygon (MATIC), Algorand (ALGO) and Hedera (HBAR) stand out. indicates ETF.com.
The demand for ETFs based on these digital currencies could be part of a broader trend already taking shape on Wall Street.
VanEck, one of the asset managers in the cryptocurrency space, submitted an application for a Solana-based ETF in July of this year.
Matthew Sigel, Head of Digital Asset Research at VanEck, declared recently that the odds of a Solana ETF seeing the light of day in 2025 are “overwhelmingly high.”
In addition, firms such as Canary Capital, Bitwise, 21Shares and WisdomTree are seeking authorization for launch ETFs based on XRP, cryptocurrency issued by the Ripple company.
The Bitwise firm has also requested approval of an ETF that groups ten digital assets. This fund would be based on the Bitwise 10 Crypto Index Fund, launched in 2017, underscoring the growing interest in diversified financial products in the cryptocurrency space.
A new era for ETFs
He nominated by trump as Secretary of the Treasury, Scott Bessent, said in an interview be excited about the president’s embrace of cryptocurrencies and believes he fits in very well with the Republican Party.
“Cryptocurrencies are about the freedom and economics of digital assets that are here to stay,” Bessent said.
Scott Bessent, Trump’s nominee for Treasury Secretary. Source: BigBreakingWire.
Ric Edelman, founder of the Digital Asset Council of Financial Professionals, go with optimism the future of cryptocurrency ETFs under the Trump administration.
According to Edelman, a “significant number of applications” for new ETFs are expected in the crypto space, ensuring that “we are at the beginning of a new era.”
The Trump administration, with its pro-bitcoin approach and its support for the development of innovative financial products, could be the catalyst for a transformation in the way cryptocurrencies are integrated into the traditional financial systemsays Edelman.
Thus, the creation of new ETFs and other financial products related to digital assets seems inevitable, and only time will tell which cryptocurrencies will be chosen to take this big step.
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