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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.

 

EU Reassesses Tech Probes Into Apple, Google, and Meta Amid Regulatory Review

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The European Commission is reevaluating its ongoing investigations into tech giants Apple, Meta, and Google under the Digital Markets Act (DMA), according to a report by the Financial Times on Tuesday. The review comes as the implications of U.S. President-elect Trump’s upcoming presidency have reportedly added a new dimension to the regulatory scrutiny.

Sources cited by the Financial Times clarified that Trump’s election victory did not directly trigger the review but is being considered in its context. The ongoing reassessment could result in changes to the scope or intensity of investigations launched since March 2024 under the DMA, the EU’s stringent framework designed to curb market dominance by major tech platforms. This legislation allows for penalties of up to 10% of a company’s annual revenue for violations.

While technical work on the cases will proceed, decisions and potential fines have been paused until the review concludes. Regulators are said to be awaiting political guidance before making final determinations regarding the cases against Apple, Meta, and Google.

The DMA, which took effect in 2022, aims to ensure a level playing field for smaller competitors and to curtail monopolistic practices by Big Tech companies. However, the review’s outcome could reshape how the regulations are enforced.

Meanwhile, Meta recently announced it would discontinue its U.S. fact-checking program as part of a broader overhaul of its content moderation strategies, potentially signaling a shift in approach under CEO Mark Zuckerberg to align more closely with the incoming U.S. administration.

Additionally, Bloomberg News reported that the EU may expand its investigations to include allegations against Elon Musk’s social media platform, X, for potentially breaching EU content moderation rules.

Apple, Meta, Google, and the European Commission have not yet commented on the review or related developments.

 

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.