- Valkyrie Funds CIO suggests SEC views Ethereum as a security, potentially impacting the approval of an Ethereum ETF.
- Coinbase Derivatives to launch CFTC-approved futures for Dogecoin, Litecoin, and Bitcoin Cash, hinting at Litecoin ETF’s favorability.
The Exchange-Traded Funds (ETFs) for XRP and Litecoin might receive approval before an Ethereum option does. This speculation has been fueled by remarks from Steven McClurg, Chief Investment Officer (CIO) at Valkyrie Funds, who suggested that Ethereum might be considered a security by the U.S. Securities and Exchange Commission (SEC), potentially leading to the rejection of an Ethereum ETF.
During a recent conversation with Eleanor Terret, a reporter for Fox Business, McClurg shared insights into the regulatory landscape for cryptocurrencies in the U.S. He posited that the SEC is likely to categorize Ether as a security and, therefore, deny a proposal for an Ethereum-based ETF.
Timing is more significant here given what is going on at the @SECGov, but worth noting the @CFTC also called $ETH and $LTC commodities in its lawsuit against @binance last year. https://t.co/KZNPL2QDxD pic.twitter.com/DzY3rghcPc
— Eleanor Terrett (@EleanorTerrett) March 26, 2024
Conversely, he indicated that ETFs for XRP and Litecoin could see approval before Ethereum, citing the functional similarities between Litecoin and Bitcoin, and a perceived greater willingness on the part of the SEC to approve financial products based on these cryptocurrencies.
This discussion comes at a time when Coinbase Derivatives announced plans to launch futures contracts approved by the Commodity Futures Trading Commission (CFTC) for Dogecoin, Litecoin, and Bitcoin Cash starting April 1. This move supports the theory that a Litecoin ETF stands a better chance of gaining SEC approval.
Coinbase Derivatives will launch the first leveraged and CFTC-regulated futures contracts for Bitcoin Cash, Dogecoin, and Litecoin in April!
Stay tuned to find out when these contracts will be available to trade on our partner platforms. pic.twitter.com/MfUBrjuNsA
— Coinbase Institutional 🛡️ (@CoinbaseInsto) March 21, 2024
Despite the CFTC’s clarification of Ethereum and Litecoin as commodities, the SEC’s stance on these cryptocurrencies remains unclear. The contrast between the CFTC’s clear classification and the uncertainty surrounding the SEC’s treatment of Ethereum adds a layer of complexity to the future of cryptocurrency-based ETFs in the United States.
Coinbase is building lots onchain looking toward the future.
But the industry also needs bridges to tradfi that help fiat move into crypto. For that, I think Coinbase is providing the most trusted infrastructure globally, including now for derivatives.https://t.co/zRch9cLY11 https://t.co/loHtLHF15B
— Brian Armstrong 🛡️ (@brian_armstrong) March 26, 2024
The potential for XRP and Litecoin ETFs to be approved before an Ethereum option has implications not only for investors and traders but also for the regulatory perception and treatment of cryptocurrencies in the country.
As the debate continues, the cryptocurrency community is keenly watching for the SEC’s decisions, which could significantly shape the path for cryptocurrency adoption and regulation in U.S. financial markets.
The recent performances of Bitcoin Cash, Dogecoin, and Litecoin present a diverse picture of the altcoin market. Bitcoin Cash has shown a remarkable surge, appreciating by 15.45% to $566.85, indicating a renewed investor interest possibly driven by its fundamentals or speculative trading patterns.
Dogecoin, which has seen attention due to social media and high-profile endorsements, has also experienced a substantial rise, with an 18.37% increase to $0.216366.
Litecoin, often considered the silver to Bitcoin’s gold, has had a relatively stable movement, with a slight decrease of 0.39% to $95.47. This stability compared to Bitcoin Cash and Dogecoin might reflect Litecoin’s established position in the market as a reliable payment method and its less speculative nature.
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