Growing Institutional Demand May Propel XRP ETF Amid Ongoing Legal Challenges, According to Ripple CEO Brad Garlinghouse

• Ripple CEO Brad Garlinghouse predicts that an XRP ETF is not just possible, but inevitable, fueled by rising demand from both institutional and retail investors.

• Currently, two firms, Bitwise and Canary Capital, have submitted applications to launch XRP ETFs, awaiting decisions from the SEC amidst ongoing legal disputes.

• Garlinghouse emphasized in a recent Bloomberg interview that the popularity of ETFs in the crypto space suggests that the XRP ETF approval is on the horizon, despite legal challenges that could extend approvals until mid-2025.

This article discusses the inevitability of an XRP ETF according to Ripple CEO Brad Garlinghouse, amidst institutional demand and ongoing SEC legal battles.

XRP ETF: A Future Financial Instrument in the Crypto Market

Ripple’s XRP may soon join other cryptocurrencies as an ETF, a move that could broaden access for investors looking to gain exposure to digital assets without directly purchasing them. XRP’s integration into traditional financial markets via an ETF could mark a significant shift in how cryptocurrencies are perceived and utilized by mainstream investors.

Growing Institutional Demand for Crypto ETFs

Garlinghouse’s assertion aligns with a noticeable surge in demand for crypto ETFs, especially following the recent approval of Bitcoin ETFs in the United States. This approval has generated substantial capital inflows; $17 billion was reported as the fastest-growing ETF in history, showcasing robust interest from both institutional clients and retail investors. SoSoValue indicated a cumulative net inflow of approximately $21.34 billion, reflecting significant investor confidence in crypto products.

Current XRP ETF Applications and SEC Challenges

As interest in an XRP ETF heightens, two prominent firms, Bitwise and Canary Capital, are navigating the regulatory landscape, having filed applications with the SEC. Bitwise’s recent restructuring of its ETF filing underscores its commitment to compliance and investor protection amid ongoing discourse around XRP’s classification as a security.

The Legal Landscape for XRP and Its Implications

The classification of XRP as a non-security remains a pivotal issue, not only affecting Ripple’s operations but also the potential launch of its ETF. Legal challenges that are expected to last until July 2025 will play a critical role in the SEC’s discussions regarding ETF approvals. If XRP is ultimately classified as a non-security, the path for an ETF could become much smoother. Conversely, any unfavorable ruling would pose significant challenges for Ripple and its ESG initiatives.

Ripple’s Activities and Political Contributions

Amidst these developments, Ripple’s co-founder Chris Larsen made headlines with his recent political contributions, donating $10 million in XRP to Vice President Kamala Harris’s campaign, following an earlier gift of $1 million. These contributions could reflect an attempt to foster a more crypto-friendly regulatory environment, which both Garlinghouse and Larsen support. Nonetheless, legal experts express skepticism regarding the motivations behind such donations, citing potential contradictions with the ongoing assertions made by regulatory bodies regarding XRP’s status.

Conclusion

The potential approval of an XRP ETF is a topic that is gaining traction in the financial world, and if realized, could redefine how investors engage with cryptocurrencies. As the situation evolves, all eyes are on the SEC as it prepares to make decisions that could pave the way for greater institutional adoption of crypto assets. For investors, this reinforces the importance of staying informed about the legal and regulatory landscape surrounding XRP and similar digital assets.