Ripple CEO Brad Garlinghouse remains optimistic about the potential for a spot XRP exchange-traded fund (ETF), despite ongoing delays stemming from regulatory scrutiny in the US.
Garlinghouse made these comments during a recent interview at Paris Blockchain Week, highlighting XRP’s unique regulatory clarity as a potential advantage.
The potential introduction of a spot XRP ETF has been a hot topic of discussion following the successful launch of several Bitcoin-based ETFs. While applications for spot Ethereum ETFs linger with the Securities and Exchange Commission (SEC), Garlinghouse believes the US market is open to ETFs tracking crypto assets beyond Bitcoin.
Times Tabloid previously reported Garlinghouse expressing support for a spot XRP ETF in a Bloomberg interview, deeming its launch “inevitable.” However, he acknowledged the SEC’s current stance as a hurdle. The regulator’s reluctance to approve spot Ethereum ETFs and a possible push to classify ETH as a security could create significant roadblocks.
Ripple CEO: XRP’s Regulatory Status a Key Differentiator
Unlike many other crypto assets, XRP shares regulatory clarity with Bitcoin in the US market. This could prove advantageous in securing a spot ETF approval compared to cryptocurrencies facing ambiguity in terms of securities classification.
Despite this optimism, industry analysts suggest that the SEC might be hesitant to green-light a spot XRP ETF while Ripple’s ongoing legal battle with the agency remains unresolved. Furthermore, the absence of filings from major asset managers for an XRP ETF indicates a degree of caution.
SEC Scrutiny and Ripple Lawsuit Remain Hurdles
While Garlinghouse maintains long-term optimism, he acknowledges that regulatory challenges could prolong the timeline for a spot XRP ETF. The SEC’s aggressive approach in evaluating ETF proposals and its legal case with Ripple creates an environment of uncertainty within the broader cryptocurrency market.
While the SEC remains a critical focus, it’s worth noting that Ripple’s view on a spot ETF extends beyond the US market. Garlinghouse has often highlighted Ripple’s global usage and the existence of XRP-based products in other jurisdictions. This perspective underscores XRP’s potential even if US regulators continue to create delays.
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Address Market Sentiment
Investor enthusiasm for a spot XRP ETF remains high. Despite the lack of immediate action, the XRP community strongly advocates for an ETF, believing it would significantly boost market accessibility and potentially increase XRP’s value. This persistent demand from investors places ongoing pressure on asset managers to consider filings.
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