The upcoming 2024 U. S presidential election is one of the most significant events that will determine the future of cryptocurrency regulation as well as approval for altcoin ETFs such as Solana (SOL). Former President of the United States, Donald Trump, who is now again eyeing the presidency has included cryptocurrencies in his campaign and has even claimed to become the crypto president. After the Spot Ether ETF Approval, there are high Expectations for the other Altcoin ETFs Approval such as Solana ETF. However, Solana ETF Approval somehow depends on the US presidential Election in 2024.
In the recent past, the U. S. Securities and Exchange Commission (SEC) has approved spot Ether ETFs, and there are chances of approval of other altcoin ETFs. Other Altcoins ETFs include Solana (SOL), XRP, Chainlink, and Dogecoin. However, the steps to get approval for these new ETFs are unclear and might be impacted by the U. S presidential election in 2024.
The SEC approves Ether ETFs on 23rd May. However, SEC Chair Gary Gensler pointed out that it will take some time before its availability. However, this has led to debates on other altcoins that might be the next to be approved with Solana being among the most likely contenders given its market interest coupled with its assets under management.
The Co-founder and president of 21.co, Ophelia Snyder is connected with ARK Invest’s spot Ether ETF and states that people should not get overly bullish regarding new altcoin ETFs. She seems to think that since Ether ETFs have been approved, it does not necessarily mean that other applications will follow in the near future. However, due to high demand from big investors, there could be more requests for listing altcoin ETFs by the companies.
Regulation in the U. S. is stringent. The SEC has been slow in approving other cryptocurrencies for ETFs and this has been the case. There is a possibility that it may take a very long time before another altcoin ETF gets approved, as per Bloomberg ETF analyst, Eric Balchunas.
A key factor that could change this situation is the U.S. presidential election in 2024. If a pro-crypto candidate like Donald Trump wins, he will nominate a new SEC commissioner who could move to ease rules on cryptocurrencies. This could open the door for approval for altcoin ETFs which has been a long haul under the current regime.
However, if Biden stays in power, the possibility of new altcoin ETF approvals may encounter more challenges. Biden’s administration has been characterized by a cautious approach towards cryptocurrency, with SEC Chair Gary Gensler taking a tough stance on crypto companies. This may result in the further delay of approval of altcoin ETFs such as Solana due to some of the factors that are associated with market manipulation, liquidity and centralization.
As per CoinGabbar, the approval of Solana ETF in the future will largely depend on the U. S presidential election in 2024 and the future market situation. The result of the election could speed up the approval process in case the new administration is more friendly towards cryptocurrencies. Therefore, with the approval of altcoin ETFs like Solana, it is still uncertain as it relies on the result of the 2024 U. S presidential election and the capability of the altcoin market to deliver the required standards of the SEC for market efficiency and stability.
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