Crypto ETFs filings to test an SEC likely to change

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.”

Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.