Steve McClurg, co-founder and chief investment officer of Valkyrie Funds, has suggested the potential approval of Ethereum or XRP exchange-traded funds (ETFs) following the expected launch of spot Bitcoin ETFs in a recent Bloomberg interview. The prediction comes from the U.S. Securities and Exchange Commission (SEC), which is reportedly likely to approve Valkyrie’s Bitcoin ETF, whereby trading is anticipated to commence as early as Thursday. XRP And Ethereum Spot ETFs on the Horizon Recent market developments support McClurg’s optimism regarding Ethereum and Ripple ETFs. He highlighted Grayscale’s addition of XRP to one of their publicly traded trusts to indicate the growing interest in diversified cryptocurrency investment products. 🚨NEW: @ValkyrieFunds Chief Investment
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Steve McClurg, co-founder and chief investment officer of Valkyrie Funds, has suggested the potential approval of Ethereum or XRP exchange-traded funds (ETFs) following the expected launch of spot Bitcoin ETFs in a recent Bloomberg interview.
The prediction comes from the U.S. Securities and Exchange Commission (SEC), which is reportedly likely to approve Valkyrie’s Bitcoin ETF, whereby trading is anticipated to commence as early as Thursday.
XRP And Ethereum Spot ETFs on the Horizon
Recent market developments support McClurg’s optimism regarding Ethereum and Ripple ETFs. He highlighted Grayscale’s addition of XRP to one of their publicly traded trusts to indicate the growing interest in diversified cryptocurrency investment products.
🚨NEW: @ValkyrieFunds Chief Investment Officer @stevenmcclurg says it wouldn’t surprise him if he saw “Ripple” ($XRP) and Ethereum spot ETFs coming to market now that the @SECGov is about to approve one for Bitcoin. pic.twitter.com/EBcwvbgChs
— Eleanor Terrett (@EleanorTerrett) January 9, 2024
While Valkyrie has not officially confirmed plans to pursue ETFs specifically for Ethereum and Ripple, McClurg believes the market conditions are favorable for such offerings.
He emphasized that these potential ETFs could be more retail-focused, providing easier access to a broader range of investors who may not have deep knowledge of the cryptocurrency market.
Despite the positive outlook, McClurg expressed uncertainty about the future launch of such products, stating, “I really don’t know if we’re going to do that or not.”
The regulatory classification of cryptocurrencies introduces complexities in the approval process for spot ETFs. While Bitcoin has been categorized as a commodity, XRP and Ethereum are considered securities, leading to potential challenges and a more intricate approval procedure for ETFs tied to these assets.
The expected impact of spot ETF approval on XRP and Ethereum prices could mirror the pattern observed with Bitcoin. However, the SEC’s cautious stance on the broader crypto market may pose additional obstacles for ETFs linked to XRP and ETH.
Crypto Firms Optimistic About Spot Bitcoin ETF Approval
About a dozen companies have submitted applications for spot Bitcoin ETFs, anticipating their approval to attract new investors and billions in inflows within their first year.
The cryptocurrency has seen a surge to a 21-month high this year, driven by expectations of imminent approval, as the SEC faces a January 10 deadline to decide on an application by Ark 21 Shares.
McClurg mentioned that they have yet to receive any indication from the SEC as Valkyrie prepares to launch its Bitcoin ETF, and no one has received a definite confirmation. However, he expressed confidence, stating, “I’m about 95% sure that we will be trading on Thursday.”
In response to the evolving landscape, Invesco, Bitwise, Valkyrie, and WisdomTree have adjusted their fees in the applications for spot Bitcoin ETFs, as indicated in updated filings with the SEC.