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.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram