Crypto ETFs filings to test an SEC likely to change
Trump’s win appears to have made ETF issuers more optimistic of potential approval across more types of funds
Bitwise CEO Hunter Horsley | DAS 2022 for Blockworks
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
Pre-election crypto ETF filings that went beyond bitcoin and ether (focused on solana, XRP, etc.) appeared to be fund firms betting on a Trump victory and a change in SEC leadership.
The election outcome is no longer unknown, and Trump’s win appears to have made ETF issuers more optimistic of potential approval across more types of funds.
People were thus on the lookout for more filings — ETF Store president Nate Geraci included:
We indeed saw some fund plans this week.
Canary Capital filed on Tuesday for an ETF that would hold HBAR, the native asset of the Hedera Network. The firm had previously filed for XRP- and litecoin-focused products.
Then, Bitwise revealed plans on Thursday to have its crypto index fund converted to an ETF. If the SEC allows that, it would trade on NYSE Arca.
This came about a month after NYSE Arca sought a rule change to have the Grayscale’s Digital Large Cap Fund trade on its exchange. Hashdex in June plotted an ETF that would hold both BTC and ETH (and potentially other crypto assets as regulations evolve).
Along with bitcoin and ether, the Bitwise 10 Crypto Index Fund’s holdings include: solana, XRP, cardano, avalanche, bitcoin cash, chainlink, uniswap and polkadot.
It makes sense for issuers to attempt new US crypto launches given the upcoming administration change. Still, we likely won’t see an SEC ruling for a while (and don’t even know yet who Trump will pick to replace SEC Chair Gary Gensler).
ETF.com senior analyst Sumit Roy called this Bitwise/NYSE Arca filing “a major test of the new administration’s views on crypto ETFs and crypto more broadly,” noting the SEC has considered XRP a security in the past.
Roy added: “An approval would suggest that the new administration will be much more permissive when it comes to crypto, while a rejection could temper some of the enthusiasm among crypto bulls and clarify what the SEC will allow going forward.”
Get the news in your inbox. Explore Blockworks newsletters:
- Blockworks Daily: Unpacking crypto and the markets.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- 0xResearch: Alpha directly in your inbox.
- Lightspeed: All things Solana.
- The Drop: Apps, games, memes and more.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
