Ripple CEO Confident That A Spot XRP ETF Is Inevitable

Key Points:

• Ripple CEO Brad Garlinghouse believes a spot XRP ETF is inevitable, citing strong demand for cryptocurrency ETFs.
• Bitwise and Canary recently filed applications for XRP ETFs, but approval may face hurdles due to Ripple’s ongoing legal battle with the SEC.

Ripple CEO Brad Garlinghouse recently said he is so confident that a spot XRP ETF will be approved that it’s “inevitable.”

Read more: Ripple CEO Predicts Spot XRP ETF Launch By 2025

Ripple CEO Predicts Spot XRP ETF Approval Amid Growing Crypto Demand

Speaking on Bloomberg Television, Garlinghouse cited the surging growth of Bitcoin ETFs as evidence that demand for cryptocurrency-based financial products is going up.

Since the approval of Bitcoin ETFs in January, he said $17 billion has gone into the product, making it the fastest-growing ETF in history. “It clearly demonstrates that there’s demand from institutions and retail to access this asset class,” he said.

The growing crypto-ETF hunger has encouraged other firms to follow suit. Early in June, Bitwise was the first firm to file papers with the U.S. Securities and Exchange Commission for offering an ETF that tracks XRP, which is the world’s seventh-biggest cryptocurrency by market capitalization. Just days later, Canary, also a digital asset investment firm, filed to create its Canary XRP ETF.

Legal Hurdles Likely to Delay Spot XRP ETF after Ripple Faces SEC Lawsuit

While Garlinghouse was stressing the popularity of ETFs, he admitted that approval may not be easy for a spot XRP ETF with the present litigation situation between Ripple and the SEC. Back in 2020, the SEC filed a $1.3 billion lawsuit against Ripple for allegedly selling unregistered securities in the form of XRP.

U.S. District Judge Analisa Torres’ ruling came last year, declaring that XRP constitutes a security upon sale to institutional investors – a ruling believed to be a big win for Ripple and the broader crypto space. Since the ruling, though, the SEC appealed it seeking to reverse parts of the judgment.

Despite this, Garlinghouse remained upbeat about the future of crypto-based ETFs and what they can do to help improve institutional involvement with the market.

Visited 1 times, 1 visit(s) today