While cryptocurrencies like Bitcoin and Ethereum dominate headlines, lesser-known digital assets such as Polygon, Algorand, Ripple, and Solana are poised for a surge in visibility and adoption. This shift is anticipated to coincide with the upcoming Trump administration, which is expected to foster a more crypto-friendly environment beginning in January.
Experts predict that the new administration will usher in a wave of applications for smaller digital currencies, alongside an increase in crypto-focused exchange-traded funds (ETFs) and index funds that encompass multiple currencies. In anticipation of this regulatory shift, several issuers have already submitted proposals for ETFs aimed at providing exposure to these emerging cryptocurrencies, including HBAR/Hedera, Ripple, and Solana.
The groundwork for a more expansive crypto ETF landscape is being laid with the nomination of Scott Bessent to lead the U.S. Treasury Department. Bessent has expressed a strong belief in the potential of cryptocurrencies, stating that “crypto is about freedom.” His appointment could signal a significant change in the regulatory landscape. Additionally, SEC Chair Gary Gensler, known for his cautious stance on cryptocurrencies and perceived as an obstacle to ETF approvals, may be replaced by Teresa Goody Guillen, a lawyer specializing in blockchain technology.
Ric Edelman, founder of the Digital Asset Council of Financial Professionals and a member of the ETF.com advisory board, emphasized that under the Trump administration, we can expect a substantial increase in filings for new crypto ETFs. He remarked, “We’re at the very beginning,” suggesting that the current momentum is just the start of broader acceptance and integration of cryptocurrencies into mainstream finance.
The anticipated changes come just over a year after the launch of the first ETFs trading in spot cryptocurrencies—a milestone achieved after years of negotiations between the SEC and eager issuers. These ETFs have proven to be remarkably successful, with total assets surpassing $100 billion last week.
Edelman also foresees the introduction of actively managed crypto ETFs as well as crypto index funds that bundle multiple currencies into a single investment vehicle. However, he noted that before this can happen, regulatory clarity is needed regarding which digital currencies fall under SEC jurisdiction as securities.
“There will be an explosion of crypto offerings similar to what we’ve seen in the stock and bond markets,” he stated. He criticized Gensler’s previous approach as not merely cautious but “obstinate,” implying that his reluctance to approve new products stifled innovation.
According to Tom Kiddle, co-founder of Palisade—a digital asset custodian backed by Ripple—the transition to a new administration and Gensler’s potential exit could signal a “new era” for cryptocurrency regulation. He expressed optimism about creating an environment where innovation and regulation can coexist harmoniously.
As the landscape evolves, it appears that smaller cryptocurrencies are set to gain traction alongside their more established counterparts, reshaping the investment landscape in 2025 and beyond.
Read more:
Bitcoin Faces Longest Losing Streak Since Trump’s Election Amid Market Corrections
Oil Prices Recover As Ceasefire Progress In Middle East Meets Trade Tensions
Markets React To Bessent’S Treasury Nomination: Is Trump’S Economic Strategy About To Change?
