CIO Valkyrie denies the possibility of imminent approval of spot Ethereum-ETFs

  • The CIO of Valkyrie believes that we should not expect the launch of spot Ethereum-ETFs in the near future.
  • Stephen McClurg predicts SEC approval of a new type of crypto fund within two years.
  • A company representative notes that there are many differences between Bitcoin and Ethereum, and this affects the consideration of applications.

Valkyrie Chief Investment Officer Stephen McClurg urged not to expect the launch of spot Ethereum-ETFs in the near future. In his opinion, the US Securities and Exchange Commission (SEC) will not rush to make a decision on new crypto funds, The Block writes.

McClurg noted that there are many differences between Bitcoin and Ethereum. For this reason, the Commission will take longer to review applications than the community expects. The approval of spot Bitcoin ETFs did not imply an immediate decision, a Valkyrie representative said.

The launch of investment products could happen within one or two years, McClurg emphasized. He believes that spot Ethereum ETFs will be approved one way or another, but optimistic forecasts focused on May 2024 are not true.

At the same time, CIO Valkyrie indicates the presence in some applications of such an item as staking. This service will add “another layer” to SEC analysis and consideration, a company representative is confident.

On February 21, 2024, Coinbase called on the Commission to approve spot Ethereum ETFs from financial giant Grayscale Investments. The cryptocurrency exchange presented the regulator with “legal, technical and economic arguments” for launching an investment product.

In addition, documents for registration of a spot Ethereum-ETF were submitted by Franklin Templeton. It joins a number of other firms that have previously submitted applications to the agency for approval of the new asset class.

Let us recall that we wrote that the SEC postponed consideration of the application for a spot Ethereum-ETF from Invesco and Galaxy Digital.