According to Steven McClurg, co-founder and CIO of Valkyrie asset management firm, the chances of a spot Ethereum ETF approval in May are unlikely. He believes that it is more likely for a Litecoin or XRP spot ETF to be approved before one for Ethereum.

McClurg shared his opinion during a fireside chat at the Digital Wildcatters Empower Conference, as reported by Fox Business’ Eleanor Terrett on Twitter. He stated that Ethereum could be considered a security, which aligns with recent reports of an investigation against the Ethereum Foundation. This has sparked discussions about the security status of ETH.

Previously, analysts were expecting an ETH ETF approval in May. However, with the recent developments and the ongoing investigation, it seems that the approval may not happen. The US Commodity Futures Trading Commission (CFTC) considers ETH a commodity and has even referenced Ethereum and Litecoin as commodities in a lawsuit against crypto exchange KuCoin.

McClurg predicts that instead of an ETH ETF, we may see a potential approval for LTC or XRP spot ETFs in the US. This aligns with the views of experts like Bloomberg senior ETF analyst Eric Balchunas, who believes that the chances of a May 2024 approval have reduced due to lack of engagement between the SEC and ETF issuers. The SEC has delayed decisions on multiple spot Ethereum ETF proposals by BlackRock and Fidelity in recent weeks.

In conclusion, while a spot Ethereum ETF approval in May may seem unlikely, we may see approvals for other cryptocurrencies like LTC and XRP before ETH. Stay tuned for updates on the evolving regulatory landscape in the crypto industry.