According to the Valkyrie exec, the possibility of an ETH or XRP spot ETF is much higher especially since spot Bitcoin ETFs are likely to be approved.
The Chief Investment Officer of Valkyrie Funds Steven McClurg has said that XRP exchange-traded funds (ETFs) are now a possibility. According to McClurg, the market could see XRP and Ethereum ETF proposals following the recent updates with Bitcoin spot ETFs and their approval likelihood.
McClurg stated in a Bloomberg interview:
“I even think we’re going to see something for Ripple, given the recent progress. You notice that Grayscale just added Ripple to one of their trusts as publicly traded, so it wouldn’t surprise me if we saw Ripple or Ethereum Spot ETFs out there.”
At the moment, there is no official mention of an XRP ETF from Ripple or any insiders. However, there are pending applications for spot Ethereum ETFs. For instance, giant asset management firm Grayscale Investments submitted a formal request for a spot Ethereum ETF to the United States Securities and Exchange Commission (SEC) last October. Grayscale wants to convert its Grayscale Ethereum Trust (ETHE) to an ETF through the New York Exchange (NYSE). Grayscale debuted the ETHE in March 2019. Early last month, the SEC extended its decision timeline on the ETF by 45 days. The SEC said it needs “a longer period within which to take action…so that it has sufficient time to consider the proposed rule change and the issues raised therein.” The new deadline is January 25, 2024.
In November, BlackRock Inc (NYSE: BLK) also filed for a spot ETH ETF with the SEC.
XRP Loses Steam as Market Awaits Decision on Spot Bitcoin ETF
Currently at $2,421 according to CoinMarketCap data, ETH has gained nearly 6% this year and 55% over the last 3 months. XRP’s trajectory, on the other hand, has not been as positive. Although it gained more than 52% over the last year and 16% in 3 months, XRP has lost 9% since January, with the last 5 days alone accounting for more than 4%.
Last December, popular crypto analyst JD offered a very bullish prediction for XRP based on a Golden Cross pattern. Explaining that the Golden Cross happens when the shorter moving average crosses the longer, JD stated that this usually ushers in a heavy price breakout. XRP history shows that the asset jumped more than 700% on the first Golden Cross in November 2017 and nearly 1,000% the second time in April 2021. Based on these calculations, XRP could climb a whopping 2,000% to $14.
The crypto community is currently waiting on the SEC’s decision to spot Bitcoin ETFs. The Commission is expected to approve or reject the ARK/21Shares ETF today, which could set some precedence for other ETF applications. Just yesterday, BlackRock and VanEck refiled amended S-1 forms to address recent comments from the SEC. However, the addition of these comments has given a few observers cause for concern. Some are worried that the SEC could decide to delay approvals if individual members choose to exercise their rights for a full review.