XRP ETF is likely to get approved before Ethereum: Valkyrie Funds CIO
- XRP and Litecoin ETFs are likely to get approved before an Ethereum option.
- Valkyrie Funds CIO Steven McClurg said he believes that Ethereum is a security.
- McClurg claims that SEC is likely to reject Spot Ethereum ETF.
Ethereum (ETH) exchange-traded fund (ETF) anticipation among traders has increased in the past few weeks, but the consensus on social media platform X is that an Ether ETF is likely to get rejected by the US Securities & Exchange Commission (SEC).
Fox Business reporter Eleanor Terret shared an insight from a recent fireside chat with an institutional investor, Valkyrie Funds’ CIO.
Litecoin and XRP ETFs could take precedence over Ethereum
Eleanor Terret of Fox Business informed crypto market participants that sources at institutional investors say that there is interest in a Litecoin (LTC) ETF. Terret explains that Litecoin and Bitcoin have functional similarities and that the SEC may be more inclined to approve it, more so than ETH.
Coinbase Derivatives recently announced their plans to launch Commodity Futures Trading Commission (CFTC) approved futures contracts for Dogecoin, Litecoin and Bitcoin Cash on April 1. This further supports the thesis of a Litecoin ETF receiving the greenlight from the SEC.
Terret tweeted the gist of her fireside chat with Valkyrie Funds’ Chief Information Officer (CIO) Steven McClurg. McClurg said that the SEC is likely to treat Ether as a security and reject a Spot ETH ETF. XRP and Litecoin ETFs, on the other hand, are likely to receive approval prior to Ethereum, according to McClurg.
Timing is more significant here given what is going on at the @SECGov, but worth noting the @CFTC also called $ETH and $LTC commodities in its lawsuit against @binance last year. https://t.co/KZNPL2QDxD pic.twitter.com/DzY3rghcPc
— Eleanor Terrett (@EleanorTerrett) March 26, 2024
While the US CFTC has clarified their stance on Ethereum and Litecoin, and classified both as commodities, the SEC’s treatment of the cryptocurrencies is unclear.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
