Institutional interest in XRP is driving ETF filings, with Bitwise, Canary Capitals, and Grayscale leading the way. Ripple CEO Brad Garlinghouse predicts that this increased interest will drive up the token’s price. The Bitcoin ETF recorded inflows of $21.41 billion, and Garlinghouse expects the XRP ETF to follow this trend.
Ripple CEO Brad Garlinghouse expressed optimism about the approval of a spot-based exchange-traded fund (ETF) for XRP in the United States. At the 8th DC Fintech Week, Garlinghouse told Bloomberg that it was only a matter of time before the U.S. Securities and Exchange Commission (SEC) approved an ETF based on the token. Crypto Basic reported highlights of his comments on X (formerly Twitter), sparking further speculation among investors.
Garlinghouse highlighted the growing institutional interest in XRP. He noted that several ETF applications linked to this token have been filed recently. Bitwise and Canary Capitals both filed for spot XRP ETFs earlier this month, with Grayscale joining the trend. Grayscale plans to convert its digital large-cap fund, which holds five different crypto assets, including tokens, into a basket ETF.
This move confirms the growing interest in XRP from institutional investors. Garlinghouse believes this participation will have a significant impact on the token’s market performance. He pointed to the success of Bitcoin ETFs, which have attracted total inflows of $21.41 billion, according to Pharcyde data. This surge in demand for crypto-based ETFs has led Bitcoin ETFs to grow by $17 billion, making them the fastest-growing ETF product in the world.
Garlinghouse predicts that institutional investors could put upward pressure on the price of Ripple tokens. He expects the same drivers of Bitcoin prices to benefit Ripple as investors become more familiar with crypto ETFs.
XRP ETF is expected to grow
When asked if the XRP ETF would perform as well as the Bitcoin ETF, Garlinghouse confidently pointed to the performance of the Ethereum ETF. Although some have pointed out that the Ethereum ETF is underperforming, Garlinghouse argued that the market dominance of the Bitcoin and Ethereum ETFs is similar, suggesting success for both.
He expressed confidence that the XRP ETF will garner significant interest, especially from the global community passionate about the token. Ripple token ranks as the 7th largest cryptocurrency by market capitalization, and its support base continues to grow as institutional investors increasingly focus on the cryptocurrency market.
Garlinghouse emphasized that the spillover effect of institutional demand for crypto ETFs is likely to lead to increased demand for the tokens, creating a positive outlook for the asset.
As the SEC considers approval of XRP ETFs, rising demand from institutional investors suggests a potential price hike. Ripple’s Garlinghouse remains optimistic, citing the successful precedent of Bitcoin and Ethereum ETFs. Several companies are vying to launch an XRP ETF, and the market awaits an SEC decision that could further elevate the token’s status in the crypto world.
