Ethereum and XRP Exchange-Traded Funds (ETFs) Anticipate Market Debut as Bitcoin ETF Approaches Approval
The value of Ethereum against Bitcoin has reached its lowest point since May 2021, indicating a decline in Ethereum’s value compared to Bitcoin. This drop aligns with the growing anticipation in the market for the approval of a spot exchange-traded fund (ETF) in the United States. This trend has been consistent since Ethereum transitioned to a proof-of-stake network in September 2022, according to data from Kaiko, a crypto intelligence platform based in Paris.
The crypto industry is closely monitoring the US Securities and Exchange Commission’s (SEC) stance on Bitcoin ETFs. Steven McClurg, the Chief Investment Officer of Valkyrie Funds, has even suggested that approvals for Ethereum and XRP ETFs may follow.
McClurg’s views are based on Ethereum’s status as the second-largest digital asset, currently priced at $2,272.26, despite a recent decline of 3.67%. Given Ethereum’s influence in the market, it is considered a strong candidate for an ETF.
The SEC’s positive attitude towards Bitcoin ETFs, along with proactive efforts from Gary Gensler, has given hope to many in the crypto community. Prominent firms such as BlackRock Inc., Fidelity Investments, and Valkyrie are eagerly awaiting the SEC’s decision on their ETF proposals.
This week, the SEC may decide on Spot Bitcoin ETFs. Time is running out for pending applications. While multiple companies have applied for Spot Ethereum ETFs, no Ripple XRP ETF has been announced. The introduction of an XRP ETF would make cryptocurrencies more accessible in regular banking, and other major cryptocurrencies may follow suit.
If Bitcoin ETFs receive the green light, it could pave the way for the introduction of an Ethereum ETF in the future. This positive decision for Bitcoin ETFs could set a precedent for Ethereum and potentially other cryptocurrency-based ETFs to enter the market.
There is also growing speculation about a potential XRP ETF, which could provide a boost to XRP’s ecosystem. While previous attempts at an XRP ETF led to short-lived price swings, McClurg’s recent hint has reignited hope, especially considering XRP’s lower value compared to other cryptocurrencies. Currently, there are no active applications for a Ripple XRP ETF, but Grayscale might consider adding XRP to its traded trusts. XRP’s current value is $0.5738, down 1% from 24 hours ago.
The anticipation of a Ripple XRP Spot ETF filing could significantly increase XRP’s price. Notably, an influential figure in the XRP community, known as “XRP whale,” suggests that an ETF application might emerge by April, with the potential launch before the end of 2024. Despite this optimism, no official announcements have been made by potential issuers regarding an XRP ETF.