XRP and Litecoin ETFs are seen as more likely to gain approval over Ethereum ETFs, as indicated by Valkyrie Funds’ CIO.
Regulatory outlook and market perspectives favor XRP and Litecoin due to less ambiguity compared to Ethereum.

Valkyrie Funds’ Chief Information Officer (CIO) recently engaged in a fireside chat, the insights from which were shared by Fox Business reporter Eleanor Terret. As a leading financial services firm, Valkyrie Funds uniquely merges traditional finance with the dynamic digital asset sector. Stationed in Nashville, the firm is distinguished by its team’s deep blockchain expertise and a strong track record in developing investment vehicles for the traditional markets.

Valkyrie is driven by experts from esteemed entities such as Guggenheim Partners, UBS, JP Morgan, Chicago Board of Trade, Chicago Mercantile Exchange, and The World Bank, positioning it at the forefront of financial innovation.

Valkyrie Funds cautions that Bitcoin, Ether, and their futures contracts, being relatively new asset classes, entail unique and significant risks. This includes the potential rapid decline in the value of investments, possibly to zero. Historically, Bitcoin and Ether, along with their futures contracts, have shown greater volatility compared to traditional asset classes, implying a risk of total investment loss.

In a revealing tweet, Eleanor Terret of Fox Business noted that institutional investor sources express interest in a Litecoin (LTC) ETF. Terret highlights the functional parallels between Litecoin and Bitcoin, suggesting that the SEC might lean towards approving a Litecoin ETF, potentially more so than an Ethereum (ETH) ETF.

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

Terret’s tweet summarizes her conversation with Valkyrie Funds’ CIO Steven McClurg, who opines that the SEC might classify Ether as a security and, consequently, reject a Spot ETH ETF. Conversely, he believes that XRP and Litecoin ETFs stand a higher chance of early approval compared to Ethereum.

Recent insights from a Binance report, backed by Valkyrie Wealth Management’s Head of Investments, underscore the growing likelihood of XRP ETFs being approved before Ethereum ETFs. The main points include:

Regulatory Outlook: Litecoin and XRP ETFs are seen as more favorable for approval by the SEC, given the increasing perception of cryptocurrencies as securities, and a probable rejection of a Spot Ethereum ETF.
Market Perspectives: Insider views and market trends support a stronger preference for Litecoin, bolstered by Coinbase Derivatives introducing futures contracts for cryptocurrencies, including Litecoin.
Regulatory Ambiguity: Although the CFTC classifies Ethereum and Litecoin as commodities, the SEC’s regulatory stance on these digital currencies remains uncertain, influencing the direction of ETF approvals.

XRP is currently trading at $0.6227, showing a modest increase of 0.35% in the last 24 hours and 0.52% over the past week.

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Filed under: Bitcoin - @ March 28, 2024 11:23 am