Godfrey Benjamin
With the likelihood of approvals for spot Bitcoin Exchange Traded Fund (ETF) products by the US Securities and Exchange Commission (SEC), Valkyrie’s Chief Investment Officer Steven McClurg has hinted that a spot Ethereum ETF and XRP ETF may also be around the corner.
Spot Ethereum ETF: Is The Time Right?
While Steven McClurg said he will not be surprised if spot Ethereum ETF comes to the market, many align with the assumption considering the position ETH occupies in the industry.
Ethereum is the second largest digital currency in the market today, and it is trading at $2,272.26, down 3.67% in the past 24 hours.
The consensus at the moment is that history will be made this week as the SEC will approve the Bitcoin ETFs. The signs currently point to popular belief. First, the SEC has been unusually forthcoming in its correspondence with potential Bitcoin ETF filers with less than 24-hour feedback granted to them.
Additionally, the SEC and Chairman Gary Gensler have been doubling down on investor education. This week alone, Gary Gensler has sent several posts on X to advise investors to manage their expectations properly. He admonished that crypto investments are risky and may not necessarily be what they are presented as.
Overall, BlackRock Inc., Fidelity Investments, Valkyrie, VanEck, and Bitwise amongst others are hopeful that their proposed rule change for this product will be granted. If the expectations are met, it might stir a ripple effect that may usher in spot Ethereum ETF in the long term.
Awakening the XRP Army
The enthusiasm for spot Ethereum ETF also extends to XRP and industry analysts believe this update may spark a rare boost in the XRP ecosystem.
🚨NEW: @ValkyrieFunds Chief Investment Officer @stevenmcclurg says it wouldn’t surprise him if he saw “Ripple” ($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 chatter surrounding a potential spot XRP ETF has been in the ecosystem for some time now and in November, a fraudulent XRP ETF, allegedly linked to BlackRock was filed. This move sparked a temporary rally in the price of XRP with an accompanying slump when the ruse was confirmed to be a charade.
With the hint from Steven McClurg, the community now has another fundamental to drive optimism, especially at a time when the price of the cryptocurrency is lagging behind those of its peers.
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