XRP Spot ETF: A Closer Reality Than Ethereum ETF, Says Valkyrie CIO
In a recent turn of events that has sparked extensive discussions within the cryptocurrency market, the Chief Investment Officer (CIO) of Valkyrie Funds, Steven McClurg, has shed light on the ongoing debate around the approval of cryptocurrency ETFs. According to McClurg, the possibility of an XRP spot ETF being greenlit by the Securities and Exchange Commission (SEC) is significantly higher compared to an Ethereum ETF. This assertion arises amid growing concerns surrounding Ethereum's potential classification as a security, a factor that could notably delay, if not outright prevent, the approval of its spot ETF.
During a recent fireside chat, McClurg eloquently voiced his apprehensions regarding Ethereum's status and the implications it could have on the timely approval of its ETF. He posited that spot ETFs for digital currencies like LTC or XRP stand a better chance at securing approval ahead of Ethereum. This perspective notably diverges from the current market speculation that leans heavily towards the approval of Ethereum ETFs.
Amidst this backdrop, Ripple CEO Brad Garlinghouse has emerged with insights that paint a bullish picture for XRP, highlighting a positive market sentiment towards the potential establishment of an XRP ETF. Garlinghouse's comments come on the heels of the successful launch of U.S. Spot Bitcoin ETFs, which has significantly buoyed investor interest and discussions about expanding the ETF landscape to include other major cryptocurrencies like XRP.
The ongoing debates have not left Ethereum ETFs out of the loop, with investors and market observers keenly monitoring the developments. Grayscale’s Chief Legal Officer, Craig Slam, has been vocal about the firm's convincing case for an Ethereum spot ETF, despite the SEC's hardline stance categorizing Ethereum as a security. Slam's remarks underscore Grayscale's positive engagement with the SEC, addressing various regulatory concerns surrounding the cryptocurrency. Nonetheless, the path to approval for an Ethereum ETF is fraught with uncertainty.
The fervent discussion around cryptocurrency ETFs underscores the dynamic nature of cryptocurrency regulation and the diverse views on the classification and approval of digital assets as mainstream financial products. As the landscape continues to evolve, the outcomes of these debates will surely have a far-reaching impact on the market and regulatory approach towards cryptocurrencies and related investment vehicles.
Analyst comment
Positive news for XRP, as Valkyrie CIO believes XRP spot ETF has a higher chance of approval compared to Ethereum ETF. Ripple CEO’s bullish comments and the success of US Spot Bitcoin ETFs add to market sentiment. However, Ethereum’s potential classification as a security could delay or prevent its spot ETF approval.
