Crypto ETFs Emerge as Political Football

Donald Trump’s support of crypto may force Kamala Harris to follow suit.

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Jeff_Benjamin
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Wealth Management Editor
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Reviewed by: etf.com Staff
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Edited by: James Rubin

Cryptocurrency ETFs might not be the biggest issue facing every voter this November, but crypto investors are growing into a force that will be difficult to ignore as the leaders of both major political parties scramble for every vote.

Witness last weekend’s speech by Republican presidential nominee Donald Trump to 3,000 people at a bitcoin conference in Nashville, where he promised to create a “strategic national bitcoin reserve,” and said he would fire anti-crypto SEC chair Gary Gensler, if he’s elected.

The crowd’s passionate response appeared to surprise even Trump, who has proven abilities to strike nerves and stir pots.

Those paying close attention will recognize Trump’s latest effort to tap into the crypto crowd as the pursuit of what campaign professionals refer to as single-issue voters.

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The momentum is carrying over from the former president’s vocal support of crypto earlier this year, which seemed to force Democrats to temper their stance on crypto and ultimately led to the Security and Exchange Commission’s July 22 approval of nine Ethereum ETFs.

To those living comfortably outside the crypto sphere this might all seem like noise. But as we saw with the sudden SEC rule change in May that opened the door for Ethereum ETFs, savvy political campaigns will never ignore an opportunity to appease a raucous bloc of single-issue voters.

What this ultimately means is that a response of at least equal support for crypto is coming from the Democratic party and presumptive nominee Kamala Harris.

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At this point, the Harris camp is still getting accustomed to its new status as the party's standard bearer following Joe Biden's withdrawal. It hasn't yet named a vice president. But rest assured, the scramble is on to make inroads with crypto fans, an increasingly vocal and growing voting bloc.

That means between now and election day, there will be promises galore that might look like wide open and untethered growth potential for anything related to cryptocurrencies. Such enthusiastic pursuit of political support has largely eclipsed concerns about potentially lax regulatory oversight and potential investor harm. 

But, if history is a guide, we can assume most of the bold talk from politicians will result in being just that.

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.


Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.


Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.

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