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Ripple CEO Brad Garlinghouse expressed optimism about the future of XRP-focused exchange traded funds (ETFs).
In an interview with Bloomberg on Tuesday, the crypto industry mogul suggested that the XRP ETF is “inevitable” and could have a major impact on the market. This statement is in light of recent developments in the crypto industry, including the growing popularity of Bitcoin and Ethereum ETFs.
The interview touched on several important aspects, including broader trends in institutional involvement in the cryptocurrency space. Garlinghouse noted that the approval of Bitcoin ETFs, which have experienced significant growth, demonstrates the growing demand for institutional access to digital assets.
“The U.S. SEC was hobbled and screamed at to approve a Bitcoin ETF in January. You saw about $7 billion go into that ETF. Fastest growing ETF in history. “This is a very clear indication that there is demand from institutions to access this asset class, and there is demand from retailers as well,” he said.
Regarding XRP, Garlinghouse emphasized that multiple applications have already been made and interest in XRP-related ETFs is increasing. He emphasized that this move is in line with the overall trend of institutional investor participation in the crypto market.
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“So there’s more interest in XRP. I’ve seen two or three ETF filings around XRP, and to me, that’s inevitable. “There will also be an XRP ETF,” Garlinghouse said.
He further explained that this increased participation from institutional investors is likely to put upward pressure on the prices of cryptocurrencies, including XRP. While discussing the performance of Ethereum and Bitcoin ETFs, he noted that the influx of institutional investors into Bitcoin ETFs has been particularly significant, and that Bitcoin’s market power remains strong. “The inflows into Bitcoin ETFs are pretty significant. The inflows into Ether ETFs are less significant,” Garlinghouse added.
However, while the approval of the XRP ETF is a major milestone for Ripple, it comes against the backdrop of an ongoing legal battle between Ripple and the US Securities and Exchange Commission (SEC). Cryptocurrency asset management company Bitwise recently filed a registration statement with the SEC to launch a Spot XRP ETF, marking a significant step forward for cryptocurrencies. However, the SEC’s appeal of a 2023 ruling regarding XRP’s classification as a non-security could impact the approval process.
Despite this regulatory uncertainty, Garlinghouse remains confident in the future of XRP and its growing community. “I think it’s clear that there’s a very active community that’s very interested in the XRP ecosystem, both here in the U.S. and overseas, and it’s growing. So the XRP ETF will do very well. “I think so,” he said.
XRP is trading at $0.53 at the time of writing, reflecting an increase of 0.53% over the past 24 hours.
