Crypto ETFs Look Unlikely to Expand Beyond Bitcoin, Ether Under Kamala Harris, Experts Say

As a seasoned crypto investor with over a decade of experience navigating market trends and regulatory landscapes, I find myself cautiously optimistic about the future of altcoin ETFs. My journey in this space has taught me that the winds of approval can change swiftly depending on who holds the reins of power.

If Kamala Harris wins the U.S. Presidential election in November, it’s likely that applications for new cryptocurrency-tracking exchange-traded funds will not be approved.

The recent approval of bitcoin and ether ETFs was considered a major victory for the industry, as it had been a long-standing goal for issuers to introduce these funds. In fact, one issuer, Grayscale, took legal action against the U.S. Securities and Exchange Commission (SEC) in an effort to overcome the regulator’s initial rejection – and was successful. As a result, billions of dollars have been invested in these new ETFs.

After that point, various entities have been making attempts to introduce the next major crypto ETF, as multiple applications are underway. These include a fund focused on tracking Ripple‘s XRP token (XRP) and the native cryptocurrency of the Solana blockchain, known as SOL (SOL).

According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, it doesn’t matter who the issuer is, but if Harris wins, the event in question won’t occur.

As a crypto investor, I eagerly watched the news about BlackRock entering the competition to launch Bitcoin and Ethereum Exchange-Traded Funds (ETFs). The anticipation was high that this move would potentially strengthen the case for SEC approval. Yet, it’s still uncertain just how much impact BlackRock had in the final decision-making process.

If Donald Trump wins the upcoming election, it could potentially increase the likelihood of more cryptocurrency Exchange Traded Funds (ETFs) being approved, regardless of whether BlackRock decides to collaborate with Bitwise, VanEck, and other entities aiming to introduce crypto ETFs that go beyond bitcoin and Ethereum’s ether. As per Balchunas, this is the prediction.

According to Nate Geraci, the president of the ETF Store, it appears very improbable that an administration led by Vice President Kamala Harris would authorize more crypto Exchange Traded Funds (ETFs) in the immediate future following the election.

Given that President Joe Biden’s administration, as described by Geraci, has been generally combative towards cryptocurrency, and considering Vice President Kamala Harris’ influential role within this administration, it seems reasonable to predict that the existing stance on crypto would persist under her potential leadership, according to Geraci.

The probability of Donald Trump winning the upcoming election has increased significantly, currently standing at 62.4%, which is the highest it’s been in several months, as indicated by data from the popular forecasting platform, Polymarket.

Over the past few months, the previous president has gained approval from the cryptocurrency community due to his positive views on the sector. He spoke at a significant Bitcoin conference, backed a Decentralized Finance platform, and even dropped by a Bitcoin bar in New York since incorporating crypto support into his election platform.

In contrast, Harris has been relatively quiet about the subject of cryptocurrency and digital assets, but lately, she has proposed a regulatory framework for these sectors, with an emphasis on the Black male demographic, as her campaign highlighted that this group is more likely to own cryptocurrencies. Nevertheless, specifics regarding her support for crypto remain sparse.