XRP ETF Filings Are Like a “Cheap Call Option” on Trump’s Victory, Says Bloomberg Analyst

Filing for an XRP ETF has emerged as the SEC approaches a critical deadline to appeal the XRP ruling, but a Bloomberg analyst believes the move is a gamble on Trump’s 2024 victory.

The U.S. SEC is nearing its deadline to appeal the 2023 ruling that XRP is not classified as a security when traded on secondary markets. Judge Analisa Torres delivered this ruling in July 2023, marking a significant legal victory for Ripple. It clarified XRP’s status and Ripple’s sales of XRP on the open market.

Now, the SEC has until October 7, 2024, to contest this ruling. Amid this billion-dollar asset manager, Bitwise has moved to list an XRP ETF.

However, Alex Thorn, head of research at Galaxy, believes the likelihood of the SEC not appealing is minimal. He argues that the chances of success for the XRP ETF would considerably drop if the SEC decides to appeal.

XRP ETF Filings Are Like a “Cheap Call Option” on a Trump Win

In response, Eric Balchunas, a senior ETF analyst at Bloomberg, compared the regulatory uncertainty facing the cryptocurrency market and economic concepts like the “Fed Put.”

He notes that filing for ETFs linked to XRP could be viewed as a calculated gamble, anticipating that a Donald Trump victory would create a more crypto-friendly regulatory environment, thereby enhancing the chances for the XRP ETF’s success.

“This is like the Trump Call. ETF filings for XRP, Solana, or any other altcoins are basically like a cheap call option on a Trump win,” he said.

On the other hand, the Bloomberg analyst noted that a presidency under Kamala Harris would likely maintain the current regulatory scrutiny under SEC Chair Gary Gensler, potentially hindering the approval of XRP ETFs.

You’ve heard of the Fed Put. This is like the Trump Call.. filings for XRP or Solana or any other alt coins are basically like a cheap call option on a Trump win as Genz will be gone and anything’s poss. Harris wins no way these get approved, and the “call” expires worthless. https://t.co/mkpCbqEuQ4

— Eric Balchunas (@EricBalchunas) October 1, 2024

Trump’s Stance Impacting XRP

In recent times, Trump’s stance on cryptocurrencies has led to considerable speculation within the crypto community. XRP supporters often point to Trump’s pro-crypto outlook as a potential boost for the asset.

They believe his policies would create a more favorable regulatory climate, allowing cryptocurrencies like XRP to thrive.

Industry leaders like Charles Hoskinson, the founder of Cardano, have stressed that Trump’s presidency could be more beneficial for the U.S. crypto industry than the one led by Kamala Harris.

Speaking at the TOKEN2049 conference, Hoskinson argued that any candidate aligned with decentralized finance (DeFi) and crypto initiatives would likely favor the industry. Ultimately, he pointed out that the SEC’s current approach under Gensler could change significantly with new leadership, particularly if Trump were to return to office.