TL;DR

Donald Trump’s victory in the 2024 election improves the outlook for altcoin ETFs such as Solana, XRP and Litecoin.
Trump has expressed support for cryptocurrencies, which has generated optimism on Wall Street that the SEC will approve these funds.
Bitcoin price hit a record high following Trump’s victory, supported by the president-elect’s pro-crypto enthusiasm.

Donald Trump‘s recent election victory has brought with it a number of positive expectations for the cryptocurrency sector, especially for exchange-traded funds (ETFs) that track altcoins such as Solana, XRP, and Litecoin.

According to a Bloomberg report, these cryptocurrencies, which previously seemed unlikely to get their own ETF, now see a brighter future with Trump in the White House.

This new administration offers a more favorable environment for the digital asset market, which has historically been more cautious under the leadership of the Biden administration.

As far as the SEC (Securities and Exchange Commission) is concerned, applications for approval for funds that track cryptocurrencies such as Solana, XRP, and Litecoin have increased noticeably this year.

While such funds seemed almost impossible under a Biden administration, experts such as Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, comment that under Trump, the chances of approval are much greater.

Balchunas notes that while there is no guarantee that the funds will be approved immediately, expectations for altcoin ETFs are now much higher, given that Trump has shown explicit support for cryptocurrencies.

Trump, who has gone from being a cryptocurrency skeptic to a staunch advocate, has made it clear that he wants to replace unsupportive SEC regulators.

This stance has generated a lot of optimism in the crypto community , especially since institutional investors are looking with more interest at coins like Solana, which is seen as a direct competitor to Ethereum.

According to Noelle Acheson, author of the Crypto Is Macro Now newsletter, Solana has a clearer narrative than other cryptocurrencies like XRP, making it an attractive option for investment funds.

Trump’s impact on the price of Bitcoin

Trump‘s influence on the cryptocurrency market has already begun to be felt, and the price of Bitcoin is a clear reflection of this change.

Following the president-elect’s victory, Bitcoin hit a new all-time high, which has been interpreted by many as a sign that investors view Bitcoin as a Trump investment.”

This has coincided with a surge in trading volume for Bitcoin ETFs, such as BlackRock‘s, which hit a record $4.1 billion in trading volume.

While some analysts like those at Bernstein believe the effects of Trump‘s pro-crypto policies are not yet fully reflected in prices, they predict that Bitcoin‘s value could reach $200,000 by the end of 2025, given the regulatory backing the cryptocurrency could receive under a Trump administration.

The combination of a friendlier regulatory environment and investor enthusiasm could lead to an even more buoyant crypto market in the coming years.

However, while the SEC ‘s change is promising, there are still uncertainties about how exactly Trump‘s policies will be implemented in this sector.

The fact that the SEC is an independent agency raises questions about Trump‘s ability to directly influence its decisions, making the future of the crypto market remain uncertain, although with much more optimistic expectations than in the recent past.

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Filed under: News - @ November 7, 2024 2:27 pm