{"id":364957,"date":"2025-02-02T22:58:33","date_gmt":"2025-02-02T17:28:33","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=364957"},"modified":"2025-02-02T22:58:33","modified_gmt":"2025-02-02T17:28:33","slug":"crypto-etf-floodgates-will-open-if-sec-crosses-regulatory-rubicon-for-xrp-solana-and-dogecoin-analyst-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/crypto-etf-floodgates-will-open-if-sec-crosses-regulatory-rubicon-for-xrp-solana-and-dogecoin-analyst-crypto-news\/","title":{"rendered":"Crypto ETF Floodgates Will Open If SEC Crosses Regulatory ‘Rubicon’ for XRP, Solana and Dogecoin: Analyst – Crypto News"},"content":{"rendered":"
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From <\/span>Dogecoin<\/span><\/a> to the <\/span>first lady\u2019s meme coin<\/span><\/a>, a flurry of filings from asset managers eager to offer new crypto products may well push the Securities and Exchange Commission past a point of no return.<\/span><\/p>\n

As the Commission <\/span>moves<\/span><\/a> to clarify crypto rules under President Donald Trump, applications for spot crypto ETFs appear to be popping up day by day\u2014ranging from Dogecoin, the original meme coin beloved by Elon Musk, to altcoins like <\/span>XRP, Solana, HBAR, and Litecoin<\/span><\/a>.\u00a0<\/span><\/p>\n

An ETF is an investment product that allows its buyers to gain exposure to an asset without the need to hold, or store, the asset directly. Bitcoin ETFs, which were just approved by the SEC last year, enable investors to buy into BTC without dealing with cryptocurrency exchanges or digital wallets. Shares in these ETFs can be purchased via traditional brokerages, just like stocks.<\/p>\n

Without speaking to any of the firm\u2019s specific SEC filings, Bitwise CEO Matt Hougan told <\/span>Decrypt<\/span><\/i> that regulators could approve spot ETFs for as many as <\/span>five<\/span><\/i> different digital assets this year. In order for that to happen, however, he said that the SEC would need to cross a regulatory \u201cRubicon.\u201d\u00a0<\/span><\/p>\n

\u201cAll commodity-based ETPs, [or] exchange-traded products, have had a regulated futures market,\u201d he said. \u201cThere are no regulated futures markets outside of Bitcoin and Ethereum.\u201d<\/span><\/p>\n

While the latest crypto boom was juiced by the SEC\u2019s approval of spot Bitcoin ETFs a year ago\u2014and the <\/span>mountains of cash<\/span><\/a> that followed\u2014the SEC dragged its feet for a decade on spot Bitcoin ETFs, consistently citing fraud and market manipulation concerns in its rejections.<\/span><\/p>\n

Still, the SEC approved Bitcoin futures ETFs in 2021, and that decision ultimately paved the way for spot Bitcoin ETFs, following the asset manager Grayscale\u2019s <\/span>courtroom victory<\/span><\/a> years later.<\/span><\/p>\n

\u2018Arbitrary and capricious\u2019<\/b><\/p>\n

Bitcoin futures ETFs give investors exposure to contracts that trade on CFTC-regulated exchanges, such as the Chicago Mercantile Exchange (CME). A market surveillance team at the CME Group monitors trading to prevent any sketchy behavior, such as market manipulation.<\/span><\/p>\n

Grayscale sued the SEC after the Commission rejected its application to uplist the Grayscale Bitcoin Trust (GBTC) into a full-fledged ETF. While the SEC pointed to its familiar concerns yet again, Grayscale argued that Bitcoin futures ETFs nullified those worries.<\/span><\/p>\n

\u201cBecause the spot Bitcoin market and the CME Bitcoin futures market are so tightly correlated, a price distortion in the spot market will be reflected in the price of the futures market,\u201d a federal appeals court ultimately ruled, finding the SEC\u2019s rejection was \u201carbitrary and capricious.\u201d<\/span><\/p>\n

After it was found that the SEC\u2019s grounds for rejecting Grayscale\u2019s bid didn\u2019t add up, a clutch of products from 10 asset managers, including Bitwise, started trading less than five months later.<\/span><\/p>\n

The Commission\u2019s subsequent approval of spot Ethereum ETFs, however, was a <\/span>shocker<\/span><\/a>.\u00a0<\/span><\/p>\n

Though the CME hosts Ethereum futures, and the SEC <\/span>approved<\/span><\/a> Ethereum futures ETFs in 2023, a <\/span>lawsuit<\/span><\/a> filed by the Ethereum software developer Consensys alleged that the SEC internally viewed Ethereum as a security, with plans to designate the cryptocurrency as such. <\/span>(Disclosure: Consensys is one of 22 investors in an editorially independent <\/span>Decrypt<\/i>.<\/span>)<\/span><\/p>\n

$MELANIA<\/b><\/p>\n

Bitwise <\/span>filed<\/span><\/a> for a spot Dogecoin ETF this week, but the asset manager Tuttle Capital Management pushed for leveraged ETFs covering relatively nascent meme coins on Monday.<\/span><\/p>\n

The firm <\/span>filed<\/span><\/a> applications for a slew of leveraged ETFs, covering the president\u2019s meme coin\u2014no more than two weeks old\u2014and the first lady\u2019s token, per the <\/span>Wall Street Journal<\/span><\/i>. It also sought to establish a leveraged ETF for the <\/span>Solana<\/span><\/a> meme coin <\/span>Bonk<\/span><\/a>, among other tokens.\u00a0<\/span><\/p>\n

Hougan is doubtful that the application centered on the first lady\u2019s meme coin will leave the Commission\u2019s desk with a stamp of approval, but other cryptocurrencies that are closer to resembling a commodity may have a shot.<\/span><\/p>\n

\u201cIf we cross that Rubicon, to some degree, then the floodgates are open,\u201d Hougan said of further crypto ETF approvals. \u201cWe don’t know how far they’re open, but I bet it\u2019s not just a crack.\u201d<\/span><\/p>\n

In Germany and Switzerland, among many other markets, regulators have found that a regulated futures market wasn\u2019t necessary to approve a spot crypto ETF beyond Bitcoin and Ethereum, Hougan said.\u00a0<\/span><\/p>\n

In the U.S., it would still be a big deal if a new precedent was established.<\/span><\/p>\n

\u201cIt\u2019s not an ETF commandment written by God on stone,\u201d Hougan said. \u201cWhatever that new standard is, if we get there, then I think there are many more opportunities.\u201d<\/span><\/p>\n

At the end of the day, the SEC may not have to cross a perceived Rubicon, at least when it comes to Solana.\u00a0<\/span><\/p>\n

Mirroring contracts that would be listed by the CME Group, Coinbase acknowledged<\/a> it was moving to establish Solana futures on its derivatives exchange Thursday, saying it was \u201cactively working with the Commodity Futures Trading Commission.\u201d<\/span><\/p>\n

The SEC declined comment to <\/span>Decrypt<\/span><\/i>.<\/span><\/p>\n

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<\/p>\n

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From Dogecoin to the first lady\u2019s meme coin, a flurry of filings from asset managers eager to offer new crypto products may well push the Securities and Exchange Commission past a point of no return. As the Commission moves to clarify crypto rules under President Donald Trump, applications for spot crypto ETFs appear to be […]<\/p>\n","protected":false},"author":2,"featured_media":364959,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-364957","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=364957"}],"version-history":[{"count":3,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364957\/revisions"}],"predecessor-version":[{"id":364961,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/364957\/revisions\/364961"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/364959"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=364957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=364957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=364957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}