- With Donald Trump’s pro-crypto administration on the horizon, asset managers are gearing up for a surge in spot ETF applications.
- Analysts Eric Balchunas and James Seyffart predict the number of crypto ETF filings could triple by January.
- Recent applications include funds for Solana (SOL), a BTC/ETH combo, and a surprise Hedera (HBAR) filing from Canary Capital.
- Approval timelines remain uncertain, with experts warning it could take years for even the most promising ETFs to be greenlit.
With the 2024 US Presidential election settled and Republican candidate Donald Trump preparing to take office, financial markets are already shifting gears.
One of Trump’s key campaign promises was installing a pro-crypto administration – a policy that has asset managers licking their lips.
The impact of spot crypto funds is already well-documented, with Bitcoin ETFs driving record-breaking volumes earlier this year. By unlocking new investment channels, traditional financial institutions have opened the crypto industry to a wider audience.
Now, prominent analysts Eric Balchunas and James Seyffart believe that a wave of spot ETF applications is coming for the SEC’s mailbox.
The only question remains – which, if any, will see approval?
Related: UK to Finalise Crypto Regulations by 2026; Morocco to End Crypto Ban
Altcoin ETFs: The Next Wave
It’s only been a few weeks since Donald Trump was confirmed as the next president of the United States. In that time, three new applications for altcoin ETFs have already been tabled to the Securities and Exchange Commission (SEC).
Unsurprisingly, a Solana fund was at the top of the pile, with Bitwise pushing forth a SOL trust alongside a fund providing exposure to both BTC and ETH.
However, the third ETF registration was a little more out of pocket. On the 12th of November, asset managers Canary Capital filed for a Hedera (HBAR) fund. At the time of writing, HBAR sits outside the top twenty cryptocurrencies by market cap.
Spot Fund Filing After Spot Fund Filing: Asset Managers To Give the SEC A Reading Marathon
The next 12 months could be carnage for the SEC, who may have to sift through thousands of pages related to spot crypto ETF filings.
Bloomberg analyst Eric Balchunas believes that, “barring [a] monster crash, it’s about to get pretty wild for [crypto ETFs].”
The list of pending crypto ETFs, currently including several XRP, Solana and mixed-coin registrations, could “triple” as soon as January, according to Balchunas and colleague James Seyffart.
Just because an ETF has been filed doesn’t mean it will be approved though, with Seyffart warning the industry that it might take a while before we see even the most likely ETF greenlit.
Nevertheless, there is a palpable optimism among both die-hard crypto investors and the broader financial industry regarding the future of digital currency.
Related: Ripple Spends $25 Million for ‘Super PAC’ Fairshake, Sends XRP Price Higher
Of course, just as the community was about to celebrate Bitcoin’s much-anticipated rise to US $100k, the kiss of death (aka Jim Cramer) had his way with the coin.
Ah well. It’s been a nice run.
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