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Valkyrie CIO Says XRP and Ethereum Spot ETFs Could Be Next
- Steve McClurg of Valkyrie suggests that the approval of a Spot Bitcoin ETF could lead to the creation of other asset ETFs such as those for Ethereum or Ripple (XRP).
- Gabor Gurbacs of VanEck believes that while the immediate impact of US Bitcoin ETF trading might be overestimated, the long-term effects could be significant.
- The SEC’s erroneous tweet regarding the approval of Bitcoin ETFs caused significant market volatility and sparked debate.
- Some are now calling for the resignation of SEC Chair Gary Gensler, and others speculating about an imminent approval.
After Approval, Other ETFs to Follow?
Steve McClurg, Chief Investment Officer at asset manager Valkyrie spoke to Bloomberg about the pending Spot Bitcoin ETF approval and that he believes an approval could see many other assets to follow. McClurg said an Ethereum or Ripple (XRP) ETF would be likely, but he also stated that his firm had not yet decided whether to apply for such a product. In his view XRP and Ethereum are more of interest for retail investors but he wouldn’t rule out anything at this stage – noting that Grayscale has added ‘Ripple’ (XRP) to one of their publicly traded trusts.
You notice that Grayscale just added Ripple to one of their trust. So it wouldn’t surprise me if we saw Ripple or Ethereum spot ETFs out there. I really don’t know if we’re going to do that or not. I think those are more retail plays and people have other ways to access them. But given this market, anything could happen, anything could happen.
Steve McClurg, CIO Valkyrie 95% Sure ETF To Trade Thursday
McClurg explained that the SEC doesn’t give any indication if an application gets approved or rejected right until the final verdict. However, despite this Valkyrie is expecting an approval to happen January 10, and trading to commence the following day – with 95% confidence.
However, the immediate impact of the start of trading for the ETFs should not be overestimated, Gabor Gurbacs, VanEcks director of digital asset strategy said. Gurbacs expressed his opinion that while over time the ETFs will add trillions of Dollars the short-term impact is often overestimated.
In my view, people tend to overestimate the initial impact of U.S. Bitcoin ETFs. I think maybe a few $100mm flows (mostly recycled) money. Long term, people tend to underestimate the impact of spot Bitcoin ETFs. If history is any guide, gold is worth studying as a parallel.
Gabor Gurbacs, VanEck SEC Causes Chaos with Fake Approval News
While a decision is highly anticipated for Wednesday US time, it has been on most investors’ minds that it really could happen at any moment. However, on Tuesday afternoon US eastern time, (Wednesday morning Australian time) the regulator tweeted that the ETFs had been approved, only to retract their declaration shortly after.
This did not only cause Bitcoin to first sky-rocket and then crash; it also sparked a lot of debate online. Many were flabbergasted that a regulator who prides itself in protecting the investing public could make such a mistake. Others called for an immediate resignation of SEC chair Gary Gensler, while some suspected an early leak, with an approval now near certain, albeit tomorrow. Some are not so sure what the whole thing was altogether.
Whatever will happen with the pending ETFs is now anyone’s guess – but with Wednesday morning fast approaching in the United States, it should be mere hours until we know what the deal is.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
