Valkyrie: “Approval of Ethereum spot ETF will take 1-2 yearsâ€
Point out the differences with Bitcoin ETF
Stephen McClurg, chief investment officer (CIO) of U.S. cryptocurrency investment company Valkyrie, said on the 22nd that approval for an Ethereum (ETH) spot exchange-traded fund (ETF) would take one to two years. Ta.
Some analysts are predicting approval as early as May this year, but Valkyrie is taking a cautious view.
McClurg speculates that an Ethereum spot ETF will not be approved any time soon. He said there are many differences between Bitcoin (BTC) and Ethereum.
It will take time for the US Securities and Exchange Commission (SEC) to understand the disclosure requirements for products like Ethereum spot ETFs. It could take another year just to understand the disclosure aspects.
McClurg also touched on staking, stating that the Ethereum spot ETF may include staking functionality, which could add a new layer.
He also pointed out that it would be difficult to offer Ethereum staking without it being considered a type of security.
Currently, nine Ethereum spot ETFs have been filed for listing with the SEC by BlackRock, Fidelity, and others. All eyes are on what kind of decision the SEC will make on ETFs such as VanEck, which has a final decision deadline in late May.
Among them, Ark Invest and Franklin Templeton aim to generate additional yield by staking ETH. There is also an argument that if such ETFs are approved, there is a risk that validators will become concentrated in a few.
connection:
Ethereum outperforms Bitcoin’s year-to-date growth rate; expectations for spot ETF approval and concerns about concentration risk
What is an ETF?
Abbreviation for “Exchange Traded Fund.†Refers to investment trusts listed on financial instruments exchanges, where a wide range of financial products, not just virtual currencies, are traded. Spot ETFs are attracting a lot of attention from investors because they actually own and manage virtual currencies.
Virtual currency glossary
connection:
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
Ripple CEO “Welcomes XRP ETFâ€
After the Bitcoin (BTC) spot ETF was approved in January, Ripple posted a job opening to “promote the initiative of crypto-related ETFsâ€, suggesting that they may be preparing a future XRP ETF. There is a view that there is no such thing.
Ripple CEO Brad Garlinghouse said in an interview with Bloomberg that he is open to the idea of ​​a physical XRP ETF.
He opined that it would be possible to diversify investment risk by creating ETFs with various stocks in addition to Bitcoin.
It goes on to say that some companies may launch basket-type ETFs that collect multiple cryptocurrencies. However, it is difficult to predict when such a physical cryptocurrency ETF other than Bitcoin will be created.
Regarding XRP, there is still ongoing litigation with the SEC regarding the sale of XRP to institutional investors.
connection:
U.S. District Court approves SEC motion and requests Ripple to submit XRP sales documents
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