Gary Gensler Resigns as SEC Chair—Spotlight Shifts to Cryptocurrency ETFs

Gary Gensler’s resignation as Chair of the U.S. Securities and Exchange Commission (SEC) has reignited hope for cryptocurrency ETF approvals. With Gensler’s departure and the potential reshaping of the SEC under pro-crypto leadership, industry insiders are closely watching companies advancing ETF applications.

Litecoin Rises 15% Amid ETF Push

Litecoin (LTC) surged 15% to close at $136.58 following news of its ETF filing. On January 16, Canary Litecoin ETF’s application was submitted to Nasdaq, marking a significant step for Litecoin’s entry into the ETF market.

Launched in 2011 by former Google engineer Charlie Lee, Litecoin employs a proof-of-work mechanism similar to Bitcoin. Often dubbed “Digital Silver,” it is regarded as a complementary asset to Bitcoin due to its capped supply.

JPMorgan forecasts initial capital inflows between $290 million and $580 million if the Litecoin ETF gains approval. Analysts see this as a crucial milestone in diversifying the cryptocurrency ETF landscape.

Expanding ETF Competition

Beyond Litecoin, Solana (SOL) and Ripple (XRP) are also advancing ETF applications. Following last year’s approval of Bitcoin and Ethereum spot ETFs, the door appears open for broader market participation.

Eric Balchunas, an ETF analyst at Bloomberg, stated, “Litecoin ETF approval is highly probable and signals expansion in the digital asset ETF sector.” Blockchain analytics firm Santiment noted that major investors recently purchased 250,000 Litecoin, suggesting strong institutional interest underpinning the rally.

Regulatory Shift at the SEC

Gensler stepped down on January 20 after a tenure marked by nearly 100 enforcement actions targeting digital assets, including high-profile litigation against Ripple Labs. His departure is widely interpreted as a result of tensions with the crypto industry, raising questions about the future regulatory approach.

Paul Atkins, a pro-crypto figure rumored to be the next SEC chair under the Trump administration, is expected to introduce a more industry-friendly regulatory framework. This potential shift aligns with growing optimism for reduced regulatory hurdles and increased institutional participation in digital assets.

Cautious Optimism for Investors

If the SEC pivots towards a more favorable stance on digital assets, the cryptocurrency ETF market could see rapid expansion. However, given the inherent volatility of digital assets, analysts urge caution among investors.

Additionally, the SEC’s stance on ongoing cases, including Ripple Labs, could evolve under its new leadership. Observers are keenly watching how these changes might reshape the regulatory landscape for cryptocurrencies and influence broader market sentiment.