Approvals of Solana and XRP ETFs depend on election outcomes

Nate Geraci, President of The ETF Store, has shared his insights on how the 2024 US presidential elections could impact the approval of ETFs for Solana (SOL), XRP, and Litecoin (LTC). Here are the key points from his analysis:

Opportunities for approval:

– Impact exaggeration: Geraci emphasizes that the impact of elections on investments is often exaggerated, but political changes can indeed shape the regulation surrounding crypto ETFs.

– SEC leadership: The future chairman of the SEC will play a crucial role in determining the speed at which new crypto ETFs can be approved. An SEC led by a Democrat, such as Kamala Harris, would be expected to take a stricter stance on crypto ETFs compared to a Republican leadership.

Key areas for ETFs:

– Crypto ETFs: The approval of Bitcoin and Ether spot ETFs has opened the door for other altcoin ETFs. A Trump administration might take a more pro-crypto stance, potentially facilitating the approval of Solana, XRP, and Litecoin ETFs.

– Share class structure: There is talk of allowing ETF share classes for existing investment funds, which has significant support from major players like BlackRock and Fidelity. A Republican-led SEC might be more inclined to agree to this.

– ETF taxation: With the rising US debt, taxation on ETFs could once again become a topic of discussion. This could affect the profitability of ETFs.

A little more patience:

The election results could have a substantial impact on the approval and development of new crypto ETFs. A Trump victory could result in a more crypto-friendly environment, while a Harris administration might maintain a more conservative approach. Geraci points out, however, that the exact influence of the elections on the ETF market is difficult to predict, but the industry must stay vigilant of the political developments that could shape policy.