Tuesday, April 23, 2024
HomeCryptocurrencyValkyrie Funds CIO Expects XRP ETF Approval to Happen Before Ethereum ETF

Valkyrie Funds CIO Expects XRP ETF Approval to Happen Before Ethereum ETF

The approval landscape for cryptocurrency Exchange-Traded Funds (ETFs) in the U.S. appears tilted in favor of XRP and Litecoin, with Ethereum facing potential roadblocks due to regulatory hurdles.

This shift stems from comments by Steven McClurg, Chief Investment Officer (CIO) at Valkyrie Funds, who suggests the U.S. Securities and Exchange Commission (SEC) might classify Ethereum as a security, hindering its ETF prospects.

Whale Alert

Read Also: XRP to $17 or $27? Analyst Spots “Window of Opportunity” With Timelines

McClurg’s reasoning hinges on the SEC’s yet-to-be-disclosed stance on Ethereum’s categorization. During a recent discussion with Fox Business reporter Eleanor Terret, he expressed his belief that the SEC could view ETH as a security.

Ripple CEO Brad Garlinghouse recently predicted that the SEC will lose this battle against Ethereum. However, this classification would likely cause Ethereum ETF proposals to be rejected, as ETFs for securities fall under stricter regulations compared to those for commodities.

XRP ETF Approval Before Ethereum ETF

Conversely, McClurg suggests that XRP and Litecoin ETFs could be approved sooner due to a perceived greater openness from the SEC towards these cryptocurrencies. He highlights Litecoin’s functional similarities to Bitcoin.

This, coupled with the recent announcement by Coinbase Derivatives to launch futures contracts for Litecoin, Dogecoin, and Bitcoin Cash, strengthens the possibility of an SEC green light for Litecoin ETFs. Major financial players like BlackRock are involved, which could potentially help sway the regulator toward approving ETH ETFs.

The CFTC’s clear classification of Litecoin and Ethereum as commodities stands in stark contrast to the SEC’s ambiguity. This lack of regulatory clarity from the SEC adds a layer of complexity to the future of cryptocurrency ETFs in the U.S., creating an environment of uncertainty for investors and market participants.

Read Also: Litecoin (LTC) Price Prediction As Upcoming Halving Activates Buying Pressure

The potential approval of XRP and Litecoin ETFs would hold significant implications beyond just investor sentiment. It could influence the overall regulatory perception of cryptocurrencies within the U.S. financial system.

<

As the debate surrounding cryptocurrency classification continues, the SEC’s decision will be closely watched. Although these can significantly impact XRP, they notably shape the path for cryptocurrency adoption and integration into mainstream financial markets.

Although no official confirmation has been given, the head of research at Uphold, recently predicted that an XRP ETF is around the corner. Many believe a significant price surge will follow, as ETF approval played a role in sending Bitcoin to its new all-time high.


Follow us on Twitter, Facebook, Telegram, and Google News

Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
RELATED ARTICLES

Latest News & Articles