According to Blockworks, recent developments in the cryptocurrency exchange-traded fund (ETF) landscape suggest increased optimism among fund issuers following the election outcome. The anticipation of a change in the Securities and Exchange Commission (SEC) leadership has led to a surge in ETF filings beyond the traditional bitcoin and ether focus, with firms exploring options involving other cryptocurrencies such as solana and XRP.
This week, Canary Capital filed for an ETF that would include HBAR, the native asset of the Hedera Network, adding to its previous filings for XRP- and litecoin-focused products. Additionally, Bitwise announced plans to convert its crypto index fund into an ETF, which would trade on NYSE Arca if approved by the SEC. This move follows NYSE Arca's recent request for a rule change to allow Grayscale’s Digital Large Cap Fund to trade on its exchange. In June, Hashdex proposed an ETF that would hold both bitcoin and ether, with the potential to include other crypto assets as regulations evolve.
The Bitwise 10 Crypto Index Fund currently holds a diverse range of cryptocurrencies, including solana, XRP, cardano, avalanche, bitcoin cash, chainlink, uniswap, and polkadot. The upcoming administration change is seen as a catalyst for these new US crypto launches, although an SEC ruling is not expected in the immediate future. The identity of the new SEC Chair, who will replace Gary Gensler, remains unknown.
Sumit Roy, a senior analyst at ETF.com, described the Bitwise/NYSE Arca filing as a significant test of the new administration's stance on crypto ETFs and the broader crypto market. He noted that the SEC has previously classified XRP as a security, and the outcome of this filing could indicate whether the new administration will adopt a more permissive approach to cryptocurrency. An approval could boost enthusiasm among crypto advocates, while a rejection might temper expectations and clarify the SEC's future regulatory direction.
