Polygon, Algorand, Ripple and Solana may not be as well known as their big brothers Bitcoin and Ethereum.
That ambiguity may not last long once the crypto-friendly Trump administration takes office next year.
Experts predict a surge in applications for smaller digital currencies, as well as more crypto options ETFs, crypto index funds and others that trade multiple currencies when the government takes over in January. Ahead of the new administration, issuers recently filed to create ETFs that provide exposure to lesser-known currencies such as HBAR/Hedera, Ripple And Solana.
The path to more crypto ETFs has already been cleared, as hedge fund manager Scott Bessent, who has declared that “crypto is about freedom,” is nominated to lead US Treasury Department SEC Chairman Gary Gensler, who has repeatedly had warned about the spread of digital currencies. prone to fraud and was widely seen as a barrier to the adoption of more crypto ETFs replace by blockchain attorney Teresa Goody Guillen.
“We can expect to see significant applications for additional ETFs in the crypto space under the Trump administration,” said Ric Edelman, founder of the Digital Asset Council of Financial Professionals and etf.com advisory board member. “We are just getting started.”
The new administration’s apparent goals to reshape the industry come barely a year after the January launch of the first ETFs trading spot cryptocurrencies, which were created after more than a decade of negotiations between the SEC and hopefuls issuers. They were among the most successful launches in the industry’s history, with assets crossing the $100 billion mark last week.
Edelman said he expects actively managed crypto ETFs to emerge as a more responsive government takes the reins. He also expects crypto index ETFs and funds that pack more than one currency into a fund. First, he said, rules should be established to determine which digital currencies are securities subject to the SEC’s jurisdiction.
“You will have an explosion of crypto supply in the same way you did in the stock and bond market,” he said, adding that “Gensler was not cautious, he was stubborn.”
The new administration and Gensler’s departure could mark a “new era” for crypto, says Tom Kiddle, co-founder of Palisade, a digital asset custodian backed by Ripple.
“It’s an opportunity to put the U.S. on a better path, one where innovation and regulation can coexist,” Kiddle wrote in an email.
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