With BTC ETFs receiving approval in January and ETH ETFs on the verge of receiving the green light from the US SEC, many are speculating about other altcoin ETFs, specifically SOL ETFs. SOL ETFs can be a thing if Trump becomes US President.
The SEC has been unfavorable toward crypto but had to approve the issuance of BTC ETFs, which it denied until a judge ruled that it had no reason not to. Thus came the first crypto ETF in the US. Surprisingly, the SEC is in the process of approving ETH ETFs, which may take some weeks to months.
Nobody expected the SEC to begin proceedings for approving ETH ETFs. But here we are. Does that mean it will approve other altcoin ETFs? Well, yes and no. The SEC, with its chair Gary Gensler, has been staunchly anti-crypto.
Gensler has called ETH a security for the longest time, making the developments around ETH ETFs surprising for many. However, that does not mean he and the agency he leads will approve other ETFs.
BTC and ETH are two of the biggest crypto assets, displaying large decentralization, resistant to market manipulation, and highly liquid. Other cryptocurrencies mostly struggle with some or all of these factors.
That may prevent the regulator from ever approving another crypto ETF, especially if US President Joe Biden gets reelected. The Democrats have also been relatively anti-crypto — Biden recently vetoed reinstating a disregarded resolution that makes it hard for institutions to deal with crypto assets.
Former President Donald Trump, if elected for a second term, can favor altcoin ETFs. He has vowed to “be the crypto president” and spoken about the asset class favorably during his campaign. If elected, his pro-crypto position will push financial houses to apply for SOL ETFs after the ETH ETFs receive approval.
By then, Trump would have likely replaced Gensler as the SEC’s chair with someone not against cryptocurrencies. With that, SOL ETFs can be a reality, leading to various altcoin ETF approvals beyond. Experts even say memecoins like Dogecoin can receive ETF approvals.
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