Valkyrie Investment Chief Forecasts XRP and Ethereum ETFs on the Horizon
The ratio between ETH and BTC has reached its lowest point since May 2021, indicating a decline in Ethereum’s value compared to Bitcoin. This drop aligns with the increasing market expectations for the launch of a spot exchange-traded fund (ETF) in the United States. According to data from Kaiko, a crypto intelligence platform based in Paris, this ratio has consistently decreased since Ethereum transitioned to a proof-of-stake network in September 2022.
The potential approval of spot Bitcoin ETF products by the US SEC has generated anticipation for similar offerings. Steven McClurg from Valkyrie suggests that a spot Ethereum ETF and XRP ETF may soon follow suit.
Let’s dive into the prospects of a spot Ethereum ETF.
McClurg’s speculation about a potential Ethereum ETF stems from Ethereum’s significant position in the crypto space as the second-largest digital currency, currently trading at $2,272.26, despite a recent 3.67% drop. The assumption behind this speculation is that Ethereum’s prominence and market influence make it a strong contender for an ETF.
The SEC’s encouraging signals add to the optimism surrounding the approval of Bitcoin ETFs. The SEC’s prompt feedback to Bitcoin ETF applicants and Gary Gensler’s proactive efforts in investor education indicate a favorable stance. BlackRock Inc., Fidelity Investments, Valkyrie, VanEck, and Bitwise are among the firms optimistic about their proposed rule changes for these ETFs.
This week, the SEC is expected to make a decision on spot Bitcoin ETFs, and time is running out for pending applications. While multiple companies have applied for spot Ethereum ETFs, no announcements have been made regarding a Ripple XRP ETF. However, an XRP ETF could make cryptocurrencies more accessible for regular banking, and other major cryptocurrencies may follow suit.
If Bitcoin ETFs receive the green signal, it could pave the way for the introduction of an Ethereum ETF in the future. This positive decision for Bitcoin ETFs might serve as a precedent for Ethereum and potentially other cryptocurrency-based ETFs to enter the market.
Now let’s explore the prospects of an XRP ETF.
There is growing speculation about a potential XRP ETF, which could provide a boost to the XRP ecosystem. Previous attempts at an XRP ETF caused temporary price fluctuations, but McClurg’s recent hint has reignited hope, especially as XRP lags behind other cryptocurrencies in terms of value.
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 stands at $0.5738, a 1% decrease from 24 hours ago. The filing of an anticipated Ripple XRP Spot ETF could significantly increase XRP’s price. Interestingly, an influential figure in the XRP community, known as the “XRP whale,” suggests that an ETF application might emerge by April, with the possibility of launching the ETF before the end of 2024. Despite this optimism, there have been no official announcements from potential issuers regarding an XRP ETF.
Tags:
– Ethereum
– Ripple (XRP)