Ripple’s CEO, Brad Garlinghouse, has recently shared his views on the ongoing push to establish an exchange-traded fund (ETF) for XRP. Following several significant filings with the U.S. Securities and Exchange Commission (SEC), Garlinghouse has expressed his belief that such products could lead to an influx of capital into the XRP ecosystem.
Multiple XRP ETF Filings in October
The interest in XRP ETFs surged in early October 2024, when Bitwise, a prominent crypto asset manager, submitted a proposal to the SEC to launch an XRP ETF.
Bitwise’s application, filed on October 2, marked a pivotal moment for XRP, currently the seventh-largest cryptocurrency by market capitalization. Just a week later, Canary Capital, a renowned investment firm, followed with a similar application, intensifying the race to launch an XRP ETF.
These filings came at a time when the SEC had just appealed the Ripple court ruling, which had ruled that Ripple’s XRP sales did not violate securities law. Despite this legal uncertainty, the two financial entities moved forward with their applications, signaling growing confidence in the token market.
Garlinghouse Surprised by Timing of XRP ETF Filings
In a recent interview on the Thinking Crypto podcast, Ripple CEO Brad Garlinghouse remarked on the unexpected timing of these filings. According to him, the close timing of the two applications caught him off guard, especially considering the ongoing deliberations within the XRP community about whether the SEC would appeal the Ripple ruling.
“The timing was surprising,” Garlinghouse commented. However, he clarified that while the filings were unexpected, the trend toward XRP ETFs did not catch him off guard. Garlinghouse had previously speculated that it was only a matter of time before such financial products would emerge, especially after the SEC had approved several Bitcoin ETFs earlier in 2024. He noted that his earlier predictions about XRP ETFs were now coming to fruition.
Potential Impact on the XRP Market
Garlinghouse’s expectation that XRP ETFs would attract capital into the cryptocurrency’s ecosystem stems from the broader trend seen in crypto investment products.
Following the approval of Bitcoin ETFs in January, over $21 billion in capital has flowed into Bitcoin ETF markets. Garlinghouse believes that XRP ETFs will follow a similar trajectory, drawing new investors and increasing liquidity in the XRP market.
The fact that two prominent investment firms are vying to launch XRP ETFs suggests a growing institutional interest in the cryptocurrency. For XRP, which has faced significant regulatory hurdles in recent years, the potential approval of these ETFs could mark a significant shift in how institutional investors view and engage with the asset.
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Grayscale’s Digital Large Cap Fund: A New Investment Approach
Garlinghouse also expressed support for Grayscale’s efforts to convert its Digital Large Cap Fund into a spot-based ETF. The fund currently includes XRP among five other crypto assets, such as Bitcoin, and its conversion could provide investors with diversified exposure to multiple cryptocurrencies within a single product.
The Ripple CEO emphasized that this “basket-style” ETF would likely appeal to a broader range of investors, allowing them to invest in various assets at once rather than concentrating on a single cryptocurrency.
He projected that the launch of such ETFs could lead to further capital inflows into XRP and the larger crypto market. According to Garlinghouse, this reflects a growing demand for diversified crypto investment options, a trend that is likely to gain traction soon.
A Shift in the Regulatory Landscape
Although the SEC’s appeal of the Ripple ruling adds a layer of complexity to the regulatory environment surrounding XRP, the filing of XRP ETF applications from major firms like Bitwise and Canary Capital indicates a level of confidence in the long-term prospects of the asset. Even as regulatory challenges persist, the development of XRP ETFs signals that institutional players see potential growth and value in the cryptocurrency.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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