Advertisement
Bloomberg Analyst Says SOL, XRP ETF Filings are ‘Call Options’ on Trump Victory
- Bloomberg’s Balchunas describes crypto ETF filings as speculative bets on a Trump presidential victory.
- It’s hoped that a Trump win could lead to a more libertarian SEC chair, potentially enhancing conditions for cryptocurrency markets.
- Trump’s promise to replace the current SEC chair signals possible regulatory ease, impacting ETF approvals and market growth.
The Spot Bitcoin exchange-traded funds (ETFs) have stolen the show this year. Or at least they have stolen some of gold’s market share, according to Bloomberg Senior ETF Analyst Eric Balchunas.
In a recent interview he said “if you become a shiny object in the ETF space, you will get some looks, trust me”, referring to a fight for dominance between Bitcoin and gold.
Bitcoin and the ETFs that launched, may have stolen some of the thunder that would have otherwise gone to gold this year.
Eric Balchunas, Bloomberg Related: SEC Filing Reveals Microsoft Shareholders to Vote on Investment in Bitcoin
Balchunas pointed to the US$21 billion (AU$31.8 billion) these funds have taken in since they started trading in January. He added that had it not been for Securities and Exchange (SEC) Chief Gary Gensler’s approval of these funds, gold would have performed a lot better.
Other Cryptos Want a Slice of the Pie
The US funds are now close to holding 1 million of the total 21 million Bitcoin, and there seems to be no stopping them. The Bitcoin ETFs have been among the fastest growing ETFs this year in the US and elsewhere.
As reported earlier, in Australia the local crypto ETFs have taken two top spots out of the three top-performing funds in 2023.
Other cryptos could benefit from their own ETFs too, and asset managers see the enormous potential, with several fund applications filed recently.
VanEck launched an application for a SOL ETF a couple of months ago, and Bitwise filed for a XRP ETF in early October, which Ripple CEO Brad Garlinghouse called ‘inevitable’, despite the ongoing lawsuit with the US SEC. However, some, like finance lawyer Scott Johnsson, say approval under Gensler is unlikely.
Balchunas: Trump to ‘Put in More Libertarian Chair’
Naturally, many in the crypto community have welcomed remarks by the former president, Donald Trump, who said he would remove Gensler as SEC Chair on day one if re-elected.
Speaking during the Plan B Forum conference in Lugano, Switzerland, on 25 October, Balchunas said that if Trump returns to the White House, he would “definitely put in a more libertarian [SEC] chair”. He added a Harris win would set the space back a couple of years.
So, if you see a Trump victory, watch this space, and if you see a [Kamala] Harris victory, just forget about it for a couple of years.
Eric Balchunas, Bloomberg Ultimately, Balchunas described the XRP and Solana filings as “call options on a Trump victory” in the upcoming presidential elections.
Related: Blockchain Breakthroughs: Chainlink Joins Bitcoin as Cardano Integrates $1.3T in BTC Liquidity
This call option is essentially making the filings a bet on the positive impact of a Trump victory on the cryptocurrency sector.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
