- Ripple and Ethereum Spot ETFs could come to market post likely approval of Bitcoin Spot ETFs, says Valkyrie Funds CIO.
- XRP is the only digital asset with regulatory clarity from US courts and the altcoin’s relisting by major exchanges is a key step.
- Ethereum price rallied with the false announcement of the Bitcoin Spot ETF by the SEC, BTC price suffered as traders “sold the news.”
Eleanor Terret of Fox Business shared views of crypto industry leaders on why Ripple XRP and Ethereum Spot ETFs could soon be approved by the US Securities and Exchange Commission, following the highly probable greenlight for Bitcoin Spot ETFs.
XRP bulls and Valkyrie Funds’ CIO, Steven McClurg are positive that XRP and Ethereum Spot ETFs will receive the regulator’s seal of approval.
Also read: Bitcoin ETF announcement hack reveals BTC price upside is likely capped
SEC could approve a single product XRP Spot ETF: Fox Business reporter
Fox Business’s Eleanor Terret shared her conversation with crypto market participants, bulls and bears and Valkyrie Fund CIO, Steven McClurg. They offer different sets of views on the likelihood of SEC’s approval on a single-product XRP Spot ETF.
The bullish case is based on the fact that XRP is the only cryptocurrency that has received regulatory clarity from the US District Court. This refers to Judge Analisa Torres’ XRP ruling from July 13 that states that XRP was not a security in its “secondary sales” on exchange platforms. This clarity ushered XRP’s re-listing on major crypto exchange platforms like Coinbase and Kraken.
Grayscale’s Digital Large Cap Fund recently relisted XRP and this is considered a positive sign that the altcoin will be included in future funds by the crypto asset management giant.
Steven McClurg says that it wouldn’t surprise him if he sees XRP and Ethereum ETFs come to market after the SEC comes close to approving the Bitcoin Spot ETF product.
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
The bearish case is that the SEC Commissioner Gary Gensler and his views on cryptocurrencies other than Bitcoin could negatively affect an Ethereum or XRP Spot ETF bid without Congressional intervention on crypto regulation. Terret argues that a change of administration to one that has a “crypto-positive” outlook is likely needed for the same.
It is also likely that once Bitcoin Spot ETFs are approved, BTC will stand distinctly from other cryptocurrencies and this difference could be followed by rejections of Spot ETFs for other assets like XRP and Ethereum.
Ethereum rallies while BTC hit by “sell the news” trade
Vetle Lunde, Senior Analyst at K33 Research elaborated on the capped BTC price gains following Bitcoin Spot ETF approval in his recent tweet on X. Lunde sheds light on the possibility that the news of ETF approval is likely a “sell the news” trade for Bitcoin traders.
Bitcoin price reaction to false SEC announcement. Source: K33 Research
Interestingly, Ethereum price rallied and crypto analysts noted that capital is likely to rotate from BTC to ETH and fuel gains in the latter. Scott Melker, crypto analyst, notes that the outcome of the series of events on Tuesday could act as a roadmap when the Bitcoin Spot ETF decision is released by the SEC.
ETH/BTC 1-hour chart
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