Ripple CEO Brad Garlinghouse believes the XRP ETF (exchange traded fund) will soon be launched in the US. This financial product will allow investors to access Ripple’s XRP tokens without purchasing them directly.
Meanwhile, XRP continues to face legal challenges, with the lawsuit potentially extending until July 2025.
It’s only a matter of time before an XRP ETF is born
Garlinghouse said in an interview with Bloomberg that XRP could be the next financial product to offer institutional investors exposure to cryptocurrencies in the United States through ETFs. He said the product’s arrival was inevitable and it was only a matter of time before it was approved.
This statement comes amid clear demand for such financial products in the US, particularly Bitcoin ETFs. The financial product, which hit the market on January 11, continues to offer investors indirect exposure to Bitcoin. Demand remains strong, with large positive inflows, as SoSoValue data shows cumulative net inflows of $21.34 billion.
“It’s clear that ETFs are popular…The US SEC was dragged kicking and screaming to approve a Bitcoin ETF in January…$17 billion for the fastest growing ETF in history “This clearly shows that there is a demand for financial institutions and retailers to access this asset class,” Garlinghouse said.
Ripple’s XRP token rose just 0.21% on the news, trading at $0.53, according to BeInCrypto data.
Read more: XRP ETF explained: What it is and how it works
XRP price performance. Source: BeInCrypto
Meanwhile, two companies, Bitwise and Canary Capital, have already applied to offer XRP ETFs. In the case of Canary Capital, its fund uses the CME CF Ripple Dollar Reference Rate to track the value of XRP. Meanwhile, Bitwise recently amended its filings with the U.S. Securities and Exchange Commission (SEC) to clarify its structure and management.
As reported by BeInCrypto, Bitwise’s credibility hinges on the classification of its XRP token by the US SEC amid continuing legal issues. This is because the US SEC continues to dispute its non-security status.
The outcome of the lawsuit could extend until July 2025 and could directly impact whether the XRP ETF moves forward. Against this backdrop, Bitwise’s amended tax return introduces measures to protect investors and ensure compliance with federal securities laws.
Despite continued uncertainty over XRP’s classification as a security, Ripple co-founder Chris Larsen donated $10 million in XRP to Kamala Harris’ campaign. This is the second major donation to the campaign, following a $1 million donation in mid-October.
The general consensus is that Larsen believes Harris can help the crypto industry through a new Democratic approach that champions technological innovation and crypto-friendly policies, but there are other versions as well.
“There are various motivations to explain this donation. If you think about it, IMO the best explanation is simple: “Bullshit, see if she accepts XRP, which her own administration says is an investment contract.” Let’s try it.” Remember, this is only 0.0323% of Chris Larsen’s net worth,” quipped pro-XRP lawyer Fred Rispoli.
Read more: How to buy XRP and everything you need to know.
The motive behind Larsen’s decision remains unclear. However, Brad Garlinghouse paid tribute and reaffirmed Ripple’s commitment to working with both Democrats and Republicans to advance crypto-friendly policies.
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