Steven McClurg, the co-founder and Chief Investment Officer (CIO) of asset management firm Valkyrie, has expressed skepticism regarding the approval of a spot Ethereum exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) in May.
McClurg shared his remarks during a fireside chat at the Digital Wildcatters Empower Conference, as reported by Fox Business’ Eleanor Terrett via her official X account on Wednesday, March 27.
According to Terrett’s post, McClurg suggested that Ethereum “could be a security,” echoing recent reports of an investigation against the Ethereum Foundation. The subpoena issued against the Swiss-based non-profit has reignited discussions about the regulatory classification of Ethereum.
While analysts previously anticipated the approval of an Ethereum ETF in May, McClurg believes that recent developments, including the investigation into Ethereum’s regulatory status, may deter the SEC from granting approval.
Despite Ethereum being considered a commodity by the US Commodity Futures Trading Commission (CFTC), McClurg remains cautious about the prospects of an ETH ETF approval, predicting a potential green light for Litecoin (LTC) or Ripple (XRP) spot ETFs before Ethereum in the US market.
Experts, including Bloomberg senior ETF analyst Eric Balchunas, have noted a decrease in the likelihood of a May 2024 approval following limited engagement between the SEC and ETF issuers. In recent weeks, the regulator has postponed decisions on several spot Ethereum ETF proposals, including those from BlackRock and Fidelity.