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Next Wave of US Crypto ETFs Set to Launch with Trump’s Inauguration

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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.

 

Trump’s SEC Poised to Overhaul Crypto Policies with Leadership Change

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With President-elect Donald Trump’s incoming administration, top Republican officials at the U.S. Securities and Exchange Commission (SEC) are gearing up to overhaul the agency’s cryptocurrency policies, potentially as soon as next week. Key SEC figures, including Commissioners Hester Peirce and Mark Uyeda, are expected to lead the charge on clarifying when a cryptocurrency qualifies as a security and to review pending crypto enforcement cases in the courts.

Trump’s pick for SEC Chair, Paul Atkins, is anticipated to bring a crypto-friendly approach, signaling an end to the aggressive crackdown on the industry initiated by President Biden’s SEC Chair Gary Gensler. Gensler, known for his tough stance on crypto regulation, will step down when Trump takes office.

Peirce and Uyeda, both of whom have been critical of Gensler’s policies, will have a majority among the agency’s politically-appointed commissioners starting next week. They are expected to begin the process of revising crypto regulations, potentially starting with a call for industry and public feedback on the SEC’s stance on cryptocurrency as securities.

The SEC has previously brought at least 83 crypto-related enforcement actions, focusing on fraud and market manipulation, with many cases centered on whether crypto tokens behave like securities. However, many in the industry argue that cryptocurrencies are more like commodities and that clear regulations are needed.

While the new SEC leadership is likely to pursue a more crypto-friendly regulatory framework, it is unclear when new policies will be finalized, and addressing complex enforcement actions could take months. Despite these challenges, the industry is hopeful that the Trump administration will create a more favorable environment for cryptocurrencies.

 

As Musk Gains Influence, Questions Hover Over U.S. Probes into His Empire

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In the final days of the Biden administration, the U.S. Securities and Exchange Commission (SEC) gave Elon Musk a tight deadline to settle or face civil charges related to alleged securities violations during his $44 billion acquisition of Twitter in 2022. Musk broke the news on social media, posting a sarcastic comment aimed at SEC Chair Gary Gensler, questioning the motives behind the ultimatum and hinting at potential political influences.

The SEC is far from the only agency scrutinizing Musk’s business empire. Musk has long criticized government oversight, positioning himself as a victim of regulatory overreach hindering his companies’ innovations. With the imminent inauguration of Donald Trump, Musk’s influence over the U.S. government has raised concerns about how ongoing federal investigations into his companies—SpaceX, Tesla, and Neuralink—might be handled.

At least 20 investigations are reportedly ongoing into Musk’s companies, ranging from security violations related to Tesla’s Autopilot system to alleged animal-welfare violations at Neuralink. Despite these investigations, the approaching Trump administration has prompted questions about whether the probes might be dropped or sidelined due to Musk’s relationship with Trump.

Musk’s close ties with Trump are evident—he has called himself Trump’s “first buddy,” visited Trump’s Mar-a-Lago estate, and publicly supported his political appointments. Trump has even appointed Musk to co-lead a private advisory group on government efficiency, which Musk has said could help reshape national driverless-vehicle regulations to benefit Tesla.

Concerns Over Political Interference

The potential for political interference has become a topic of debate. While some experts suggest that prosecutors may still push forward with investigations if they have sufficient evidence, others argue that lower-level officials could avoid aggressive prosecution to appease the incoming administration. In particular, Trump’s DOJ appointments, many of whom have defended him in the past, could exercise discretion to protect Musk’s companies.

Tesla, SpaceX, and Neuralink have all faced their own legal hurdles. For Tesla, a DOJ investigation is looking into whether Musk and Tesla misled investors by exaggerating the self-driving capabilities of their vehicles. Meanwhile, SpaceX faces scrutiny over pollution and regulatory violations, with the Environmental Protection Agency (EPA) and the Federal Aviation Administration (FAA) taking action.

Despite this, SpaceX has largely avoided major regulatory challenges due to its extensive contracts with NASA and the U.S. government, which have outsourced much of the nation’s space exploration to Musk’s company.

Musk’s reported contacts with Russian President Vladimir Putin also raise concerns, but it is unlikely that the Trump administration will scrutinize these interactions, given Musk’s ties to the incoming administration and the fact that he has worked closely with Jared Isaacman, a tech entrepreneur who is now involved with NASA.

Ongoing Scrutiny and Potential Shifts

As Trump prepares to take office, the future of federal probes into Musk’s companies remains uncertain. While some experts downplay the risk of political interference, others warn that the shift in power could influence how aggressively the investigations move forward.