- Bitcoin and Ethereum ETFs saw significant outflows on October 1, totaling millions.
- The US election results could shape the regulatory landscape for XRP and SOL ETFs.
Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) saw significant outflows on October 1.
BTC ETFs saw withdrawals totaling $242.6 million and ETH ETFs saw outflows of $48.6 million.
Can Trump Boost SOL and XRP ETFs?
Amid this fluctuating ETF market, recent discussions have emerged suggesting that the outcome of the upcoming US presidential election could influence the regulatory landscape for crypto ETFs, particularly those involving assets like Ripple (XRP) and Solana (SOL).
Speculation abounds that a potential Donald Trump victory could impact the approvals and future performance of these digital asset ETFs.
In a recent thread on X (formerly Twitter), Bloomberg analyst Eric Balchunas highlighted the challenges facing new cryptocurrency ETFs, such as those of SOL and from SEC Chairman Gary Gensler.
Balchunas pointed out that Gensler’s strong stance on the crypto market has complicated the approval process for these ETFs, impacting major industry players like Binance and Coinbase.
Reiterating Trump’s pledge to fire Gensler upon taking office, Balchunas said in an October 2 message:
“You’ve heard of the Fed Put. It’s like Trump’s call… deposits for XRP or Solana or any other alternative coin are basically like a cheap call option on a Trump victory, because Genz will be gone and anything is possible. Harris does not win in any case, these are approved, and the “appeal” expires worthless.
Bitwise’s decision to launch the XRP ETF
This comment follows Bitwise’s recent decision to create an XRP ETF, which was marked by the registration of a trust entity in Delaware.
The timing is important because it coincides with the SEC’s looming deadline to appeal Judge Torres’ ruling, which determined that secondary sales of XRP on exchanges do not qualify as securities.
Leaders weigh in on…
Alex Thorn, head of enterprise-wide research at Galaxy Digital, provided more information on this:
Source: Alex Thorn/X
However, another X user asked Balchunas an important question and said:
“If there was no demand for the Ethereum ETF, why would there be demand for the XRP ETF?
However, on defense, Balchunas noted:
Source: Éric Balchunas/X
What future for Trump and Harris?
Despite the ongoing political shifts reflected in Polymarket data, with Kamala Harris leading Trump by a slim margin in votes, VanEck analysts remain confident in Bitcoin’s resilience.
Source: Polymarché
Mathew Sigel believes that regardless of the outcome of the 2024 US elections, Bitcoin will be largely unaffected.
However, he noted that a Kamala Harris administration could potentially provide more favorable conditions for Bitcoin’s growth compared to a Trump presidency.
So, with just 33 days until the elections, it will be interesting to see who wins and what impact the result will have on the crypto sector.
