By Michael Scott
The exchange-traded funds (ETFs) experts forecast that the Kamala Harris administration will not approve other crypto ETFs beyond Bitcoin and Ether.
Experts acknowledge that several prospective issuers submitted bids for ETFs tracking Ripple’s XRP, Solana (SOL), and Litecoin (LTC). Nonetheless, the experts contend that the trajectory of such applications lies with the US voters.
The analysts consider the applications ETFs providing exposure to XRP and SOL will have improved approval odds if Donald Trump triumphs over Kamala in the presidential election. The experts anticipate such applications will go nowhere if the Democratic nominee wins the election.
The decision by the US Securities and Exchange Commission (SEC) to greenlight spot Bitcoin ETFs in January and Ether ETFs in July was a massive win following the decade-long struggle to introduce the funds. Besides BlackRock’s entry into the race, Grayscale successfully challenged the SEC rejection, allowing billion-dollar inflows into the new ETFs.
Since the nod, other issuers appear to be taking stabs at becoming part of the next crypto-affiliated ETF launch. As such, hopeful issuers are filing for Ripple’s XRP token and SOL ETFs.
The applications are motivated beyond the billions accumulated in ETH and BTC ETFs. The Bitcoin ETFs are projected to outshine gold ETF flows by 2026. Despite the pursuit of approval for XRP and SOL ETFs, experts Eric Balchunas and Nate Geraci consider such as appearing difficult.
Bloomberg Intelligence senior analyst Balchunas considers that approval of crypto ETFs beyond the existing would not happen if the present vice president wins in the November polls. Some experts opine that the chances for approval improved only after the reputable asset management giant BlackRock sought to list the Bitcoin and Ether ETFs.
Balchunas opines that if the GOP candidate Trump win, such would yield a decent chance for additional crypto ETFs. It is uncertain whether BlackRock will join VanEck and Bitwise to expand their crypto ETFs beyond BTC and ETH.
The ETF Store head Nate Geracy echoes Balchunas’ outlook and concludes that a Harris administration will unlikely approve more spot crypto ETFs post the election. He considers Harris’ manifesting President Joe Biden’s combative element in his crypto stance. Given the powerful position in the current administration, Harris would have the status quo under her leadership.
Will SEC Approve Canary Capital ETFs Soon?
Litecoin founder Charlie Lee hailed the recent filing by Canary Capital as it pursues approval for XRP and Litecoin (LTC) ETFs. The excitement arises from growing interest among institutional and retail investors.
Lee is optimistic that LTC ETF applications will secure the highly sought-after approval as crypto ETFs take the lead.
FOX journalist Elaanor Terrett contrasts Balchunas and Neraci’s statements by expecting an uptick in Litecoin demand. The journalist points towards the higher value in Grayscale’s Litecoin Trust and anticipates tons of institutional interest in LTC.
Lee highlights the Grayscale Litecoin Trust (LTCN) price surpassed double the net asset value (NAV). Additionally, he profiles Litecoin as mirroring Bitcoin features, which is why both have commodities classification.
Canary Capital’s filing for the Litecoin ETF is a critical development in the crypto-affiliated investment space. Such arises because issuers have historically targeted established crypto, including ETH, BTC, and XRP.
Analysts Views on LTC and XRP ETFs
Bloomberg Intelligence analyst James Seyffart draws attention to the recent filing by Canary Capital for the XRP ETF, which is also pursuing Litecoin ETF. The ETF expert observes that Litecoin representation exists in Europe’s exchange-traded products (ETPs) including CoinShares’ $LITE in Switzerland and $ELTC in Germany issued by ETC Group.
The recent ETF filing by Canary Capital is unique from other applications that target major crypto. Balchunas profiles the filing for LTC ETF as significant, given that it is the pioneer product globally.
Canary Capital’s pursuit of LTC ETF comes days after it sought approval for the XRP ETF. The October 8 application drew considerable attention within the community, amplified further after Bitwise pulled a similar move.
The analysts consider that approval of XRP and LTC ETFs would offer alternative avenues for investors’ exposure to the underlying assets. Nonetheless, approving the ETFs is uncertain as the SEC will exercise caution following the struggles experienced by spot Ethereum ETFs since their unveiling. The commission is bound to sustain extra scrutiny towards similar products.