With U.S. election dynamics stirring cryptocurrency markets, upcoming Solana and XRP ETFs may hinge on potential shifts in regulatory policy if Donald Trump wins the presidency. Analysts suggest a Trump victory could usher in pro-crypto leadership at the SEC, sparking optimism in the ETF sector.

Trump Victory Could Drive Crypto ETF Landscape

The surge in applications to list cryptocurrency exchange-traded funds (ETFs) in the US represents "call options on a Trump victory" in the next presidential elections, according to Bloomberg Intelligence's Eric Balchunas, who specializes in ETFs, on October 25.

During the Plan B Forum conference in Lugano, Switzerland, Balchunas stated, "If [former US president Donald] Trump wins […] he will definitely put in a more libertarian [Securities and Exchange Commission] chair".

"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," Balchunas added.

SEC Resistance Softens, Bitcoin and Ether ETFs Gain Ground

According to Cointelegraph, after years of opposition from the SEC, Bitcoin ETFs were listed in January and Ether ETFs in July in the US. Issuers are currently trying to have other tokens, such as XRP and Solana, registered as ETFs.

The proposed SOL ETFs by VanEck and 21Shares were first submitted to authorities for approval by financial exchange Cboe in July.

Recent XRP and Litecoin ETF Filings Add to Industry Momentum

Two exchange-traded fund (ETF) issuers, Canary Capital and Bitwise, submitted proposals for XRP ETFs in October. Along with that, Canary registered a spot Litecoin ETF on October 15.

Candidates Differ in Approach to Crypto Regulation

Democratic nominee Kamala Harris has been mostly silent on the business, in contrast to Republican contender Donald Trump, who has stated his desire to make America "the crypto capital of the world"—in the upcoming November election.

According to Galaxy Research, VP Harris is more lenient on cryptocurrencies than her boss Joe Biden was, but she is still not as pro-industry as Trump (Oct. 14).

Biden Administration’s Regulatory Actions Impact Crypto Sector

The SEC has brought up to a hundred regulatory actions against companies in the cryptocurrency market since Biden took office, demonstrating an aggressive regulatory posture toward the sector.

If Trump is elected, he will "fire" Gary Gensler, who is presently the head of the SEC, as he stated in July.

Bitcoin ETFs Dominate 2024 Launches

In a post on the X platform, Nate Geraci, president of The ETF Store, a financial adviser, revealed that thirteen out of the twenty-five biggest exchange-traded fund (ETF) launches in 2024 by inflows through August were cryptocurrency funds.

The ETF landscape has been completely taken over by Bitcoin this year, with six out of the top ten most successful launches in 2024 being Bitcoin-related, according to Geraci's X article.