Donald Trump's recent endorsement of cryptocurrencies Cardano (ADA), XRP, and Solana (SOL) has sparked speculation in the crypto community about potential exchange-traded fund (ETF) approvals for these assets.
Trump's Endorsement and Its Significance
While Trump did not explicitly mandate these assets' inclusion in ETFs, his proposal to add them to a strategic reserve was interpreted by the market as an indirect endorsement. Analysts suggest that Trump's support could mitigate regulatory concerns and strengthen ETF applications for these altcoins.
Regulatory Challenges and Expert Opinions
Some industry experts urge caution. Trump's proposal prioritizing Bitcoin (BTC) and Ethereum (ETH) requires congressional approval. Luke Nolan from CoinShares expressed skepticism about the reserve appearing as proposed, and Zach Burks from Mintable doubts the strategic value of XRP and Cardano for the U.S.
Future of ETFs and Market Impact
Despite regulatory uncertainty, the Securities and Exchange Commission (SEC) is reviewing ETF applications for XRP, Solana, and Cardano. Trump's initiatives in the crypto sector, including a memecoin project, fuel expectations that these ETFs may gain approval. Meryem Habibi from Bitpace believes the reserve proposal will accelerate ETF approvals.
Despite short-term volatility, analysts suggest that SEC-approved altcoin ETF approvals could lead to renewed institutional interest and price gains for these assets.
