Next Wave of US Crypto ETFs Set to Launch with Trump’s Inauguration
The crypto asset-management industry is gearing up for the next wave of exchange-traded funds (ETFs) following the launch of spot bitcoin ETFs in early 2024, which exceeded expectations by pulling in $65 billion. These new products have driven the price of Bitcoin up from $43,000 to over $100,000, with BlackRock’s iShares Bitcoin Trust emerging as the most successful debut in ETF history.
Cryptocurrency advocates are optimistic about the future, particularly with President-elect Donald Trump’s inauguration, which is seen as a potential catalyst for a crypto-friendly environment. Several companies, including VanEck, 21Shares, and Canary Capital, have already filed applications for ETFs that would track various cryptocurrencies, including Solana, Ripple’s XRP, and Litecoin.
The push for new products began months before the election, with many issuers anticipating lighter regulatory oversight under a potential Trump administration. The hope is that Trump’s appointee, Paul Atkins, will take a supportive stance on digital assets, contrasting with current SEC chair Gary Gensler’s cautious approach.
Several new crypto ETF products are expected to launch soon, including derivative-based funds designed to protect investors from losses on bitcoin itself. Options on some bitcoin ETFs were approved late last year, and more options will debut shortly after Trump takes office. Innovative new multi-asset funds, such as those that combine cryptocurrencies and gold, are also in the works.
While bitcoin ETFs have seen success, other products, such as those tied to ether, have experienced slower growth. The volatility of less widely-held coins like Solana and XRP raises concerns about their long-term performance, but the industry remains hopeful, citing the growth potential of these emerging assets.
Despite regulatory uncertainty and debates over the classification of certain cryptocurrencies, industry insiders believe the sky is the limit for innovation in the crypto ETF space.
