These crypto ETFs are ‘call options’ on American options.
The US presidential election on November 5 may determine the fate of more than half a dozen proposed kriptovalyutnyh exchange-traded funds (ETFs) awaiting a green light from regulators.
In the year In 2024, asset managers filed multiple regulatory filings to list ETFs that hold altcoins, including Solana (SOL), XRP (XRP) and Litecoin (LTC), among others.
A number of proposed crypto index ETFs designed to hold different baskets of issuers are awaiting approval.
In effect, these records are “call options” in the US presidential race, Bloomberg Intelligence analyst Eric Balchunas said on Oct. 25.
Three out of four crypto holders say the candidate's crypto policy will influence how they vote. Source: Gemini
The poll shows that Republican candidate Donald Trump – who has said he wants to make America the “cryptocurrency capital of the world” – has been quieter on the industry compared to Democrat Kamala Harris.
Under President Joe Biden – President Harris's deputy – the US Securities and Exchange Commission (SEC) has taken a tough regulatory stance on crypto, bringing more than 100 regulatory actions against industry companies.
“If you see Trump win, look at this place, and if you see Harris win, just forget about it for two years,” Balchunas said at the Plan B Forum conference in Lugano, Switzerland.
Here's what to expect from crypto ETF issuers if Trump wins on November 5.
BTC and ETH lead by market capitalization. Source: CoinGecko
Altcoin ETFs
In June, funders VanEck and 21Shares each filed an S-1 to register their SOL ETFs with the SEC.
On October 30, crypto asset manager Canary Capital launched its own SOL ETF.
The SEC greenlit space for Bitcoin (BTC) and Ether (ETH) ETFs to list in January and July, respectively.
However, it's “unlikely that ETH's approval will trigger a big wave of approval” for other types of crypto ETFs, Ophelia Snyder, co-founder and president of 21.co, told Cointelegraph in June. 21.co owns crypto ETF issuer 21Shares.
The SEC has repeatedly confirmed that SOL – unlike BTC and ETH – is a security, but detailed plans for the SOL ETF are “still in play,” Matthew Siegel, head of digital assets research at Van Eck, said in August.
“VanEck believes SOL is a commodity like BTC and ETH,” Siegel said. “We are committed to supporting this position […] to the relevant regulators”.
Meanwhile, in October and November, Canary Capital, Bitwise and 21Shares each offered ETFs for the proposed XRP. Canary Capital also offers to register the Spot LTC ETF.
GDLC holdings. Source: Grayscale
Crypto Index ETFs
On October 29, securities exchange NYSE Arca applied for permission to list Greyscale Digital Large Cap Fund (GDLC) shares.
“[T]It represents the first national securities exchange regulations to allow the listing and trading of shares of multiple crypto-assets and proposed legislative changes. [ETFs]” said Grayscale
The fund contains a crypto index portfolio consisting of BTC, ETH, SOL, XRP and Avalanche (AVAX).
“The next logical step is an index ETF because indexes are efficient for investors – just like people buy the S&P 500 in an ETF. This will be the same in crypto,” Tischhauser said.
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