Harris Presidency Likely to Block Approval of Crypto ETFs Beyond Bitcoin and Ethereum
The approval of exchange-traded funds (ETFs) tracking cryptocurrencies beyond bitcoin (BTC) and ether (ETH) may be highly unlikely if Democratic Presidential nominee Kamala Harris wins the election in November, according to two experts in the field. This assessment comes as several firms have recently submitted applications to create U.S. ETFs that track other popular digital assets, including Ripple’s XRP and Solana’s SOL.
The approval of spot bitcoin and ether ETFs earlier this year marked a significant milestone for the industry, with billions of dollars pouring into these new funds. However, the road ahead appears uncertain, with some experts warning that a Harris presidency could spell doom for these applications.
"It won’t happen if Harris wins, regardless of the issuer," said Eric Balchunas, senior ETF analyst at Bloomberg Intelligence. Balchunas’ statement suggests that the tide may be turning against these applications, which have been in process for several months.
Industry insiders had initially believed that asset management giant BlackRock’s entry into the market would significantly improve the chances of approval. However, it remains unclear whether BlackRock played a significant role in securing the approval of spot bitcoin and ether ETFs.
On the other hand, former President Donald Trump’s victory could potentially pave the way for more crypto ETFs to be approved. According to Balchunas, there is a "decent chance" that additional spot crypto ETFs would receive approval if Trump wins the election.
Nate Geraci, president of the ETF Store, shares this outlook. "It seems highly unlikely that a Harris administration would approve additional spot crypto ETFs, at least not anytime soon after the election," he said. Geraci attributes this assessment to the Biden administration’s combative approach to cryptocurrency and Harris’ powerful position within that administration.
In contrast, Trump has taken a more favorable stance toward the industry in recent months. He appeared at a prominent Bitcoin conference, endorsed a decentralized finance (DeFi) platform, and visited a Bitcoin bar in New York, all of which have been met with enthusiasm from the crypto community.
Harris’ position on cryptocurrency is less clear-cut, although she has recently unveiled plans to establish a regulatory framework for digital assets. However, details on how she would support the industry are still scarce.
The odds of Trump winning the election have surged to 62.4%, according to prices on the leading prediction market, Polymarket. If he does win, it could potentially unlock new opportunities for crypto ETFs and other digital assets.
Why a Harris Presidency May Block Approval of Crypto ETFs
A Harris presidency may block the approval of crypto ETFs beyond bitcoin and Ethereum due to her powerful position within the Biden administration and its combative approach to cryptocurrency. The industry had initially believed that BlackRock’s entry into the market would significantly improve the chances of approval, but it remains unclear how big a factor BlackRock played in securing the approval of spot bitcoin and ether ETFs.
Industry experts believe that a Trump victory could potentially pave the way for more crypto ETFs to be approved. According to Balchunas, there is a "decent chance" that additional spot crypto ETFs would receive approval if Trump wins the election.
The stakes are high, with several firms having submitted applications to create U.S. ETFs that track other popular digital assets, including Ripple’s XRP and Solana’s SOL. If these applications are rejected, it could have significant implications for the industry as a whole.
Trump’s Favorable Stance Toward Cryptocurrency
Former President Donald Trump has taken a more favorable stance toward cryptocurrency in recent months, which has been met with enthusiasm from the crypto community. He appeared at a prominent Bitcoin conference, endorsed a DeFi platform, and visited a Bitcoin bar in New York, all of which have contributed to his growing popularity among crypto enthusiasts.
In contrast, Harris’ position on cryptocurrency is less clear-cut, although she has recently unveiled plans to establish a regulatory framework for digital assets. However, details on how she would support the industry are still scarce.
The odds of Trump winning the election have surged to 62.4%, according to prices on the leading prediction market, Polymarket. If he does win, it could potentially unlock new opportunities for crypto ETFs and other digital assets.
Implications of a Harris Presidency for Crypto ETFs
A Harris presidency may block the approval of crypto ETFs beyond bitcoin and Ethereum due to her powerful position within the Biden administration and its combative approach to cryptocurrency. The industry had initially believed that BlackRock’s entry into the market would significantly improve the chances of approval, but it remains unclear how big a factor BlackRock played in securing the approval of spot bitcoin and ether ETFs.
Industry experts believe that a Trump victory could potentially pave the way for more crypto ETFs to be approved. According to Balchunas, there is a "decent chance" that additional spot crypto ETFs would receive approval if Trump wins the election.
The stakes are high, with several firms having submitted applications to create U.S. ETFs that track other popular digital assets, including Ripple’s XRP and Solana’s SOL. If these applications are rejected, it could have significant implications for the industry as a whole.
Conclusion
A Harris presidency may block the approval of crypto ETFs beyond bitcoin and Ethereum due to her powerful position within the Biden administration and its combative approach to cryptocurrency. Industry experts believe that a Trump victory could potentially pave the way for more crypto ETFs to be approved, with several firms having submitted applications to create U.S. ETFs that track other popular digital assets.
The stakes are high, with billions of dollars pouring into new funds and the industry eagerly awaiting approval of these new products. If Harris wins the election, it could spell doom for these applications, while a Trump victory could potentially unlock new opportunities for crypto ETFs and other digital assets.