Tuesday, 23 July 2024

Crypto News

Valkyrie co-founder says spot Ethereum ETF approval unlikely in May

Valkyrie co-founder says spot Ethereum ETF approval unlikely in May

  • Valkyrie co-founder and CIO Steven McClurg says a spot Ethereum ETF approval is unlikely in May.
  • He says its likely a Litecoin or XRP spot ETF is approved before that of ETH.

Steven McClurg, the co-founder and CIO of asset management firm Valkyrie, believes the US Securities and Exchange Commission (SEC) will not approve a spot Ethereum ETF approval in May.

The Valkyrie CIO shared his remarks during a fireside chat at the Digital Wildcatters Empower Conference.

Fox Business’ Eleanor Terrett shared McClurg’s opinion via her official X account on Wednesday, March 27.

What are analysts saying about spot Ethereum ETF?

According to Terrett’s post, McClurg believes that Ethereum “could be a security”, comments that may align with recent reports of an investigation against the Ethereum Foundation. The subpoena against the Swiss-based non-profit has seen the topic of whether ETH is a security resurface.

Before recent developments, analysts largely expected an ETH ETF approval in May.

While previous commentary, including from a former high-ranking SEC official dubbed Ethereum not a security, it appears it could be a factor in the question of SEC’s approval of a spot Ethereum ETF.

McClurg believes the regulatory nod for the highly anticipated ETF will not happen this May.

Notably though, the US Commodity Futures Trading Commission (CFTC) views ETH as a commodity and the latest indicator is reference to Ethereum and Litecoin as commodities in its lawsuit against crypto exchange KuCoin.

Instead he sees a potential approval of LTC or XRP spot ETFs ahead of any for ETH in the US.

Analysts, including Bloomberg senior ETF strategist Eric Balchunas have said chances of a May 2024 nod have reduced following the lack of engagement between the SEC and issuers.

Over the past few weeks, the regulator delayed decisions on multiple spot Ethereum ETF proposals, including by BlackRock and Fidelity.

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