The XRP ecosystem is buzzing with excitement following the recent push for an exchange-traded fund (ETF) focused on the cryptocurrency. Ripple’s CEO, Brad Garlinghouse, shared his thoughts on the surprising timing and potential impact of these ETF applications, despite the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
A Surge In XRP ETF Filings
October 2024 witnessed a flurry of XRP ETF filings, beginning with Bitwise’s proposal on October 2. As one of the leading crypto asset managers, Bitwise’s move highlighted growing confidence in XRP’s potential. Just a week later, Canary Capital followed suit with its own XRP ETF application, further intensifying the race to launch such financial products.
These filings coincided with the SEC’s appeal against a pivotal court ruling that found Ripple’s XRP sales did not breach securities laws. Despite the regulatory uncertainty, the applications underscore the rising institutional interest in XRP, positioning it for new opportunities.
In a recent interview on Thinking Crypto, Garlinghouse expressed his surprise at how quickly these ETF filings emerged. “The timing was surprising,” Garlinghouse admitted, especially given the SEC’s legal appeal. However, he noted that the emergence of XRP ETFs was always a matter of time.
Garlinghouse previously predicted that following the approval of Bitcoin ETFs earlier in 2024, XRP would eventually see similar financial products. His expectations are now materializing, a sign of growing market maturity for the cryptocurrency.
XRP ETFs Could Unlock New Capital
Garlinghouse is optimistic that XRP ETFs will attract fresh capital to the ecosystem. He pointed to Bitcoin’s ETF success as a case in point: Since January 2024, over $21 billion has flowed into Bitcoin ETFs.
“The approval of XRP ETFs could open the floodgates,” Garlinghouse remarked, emphasizing that increased liquidity from institutional investors would enhance XRP’s market dynamics. The interest from major players like Bitwise and Canary Capital suggests a shift in how institutional investors perceive XRP, despite its regulatory hurdles.
Garlinghouse also praised Grayscale’s plans to convert its Digital Large Cap Fund into a spot-based ETF. This fund, which includes XRP among other assets like Bitcoin, would offer diversified exposure to multiple cryptocurrencies.
According to Garlinghouse, this “basket-style” ETF could appeal to a wider range of investors seeking exposure to multiple assets within a single product. He believes such innovations will attract further capital, benefiting both XRP and the broader crypto market.
Regulatory Uncertainty Won’t Halt Progress
Although the SEC’s appeal introduces complexities, the ETF filings demonstrate confidence in XRP’s long-term potential. For Garlinghouse, this reflects a shift in sentiment among institutional investors, signaling that they see value in XRP despite regulatory setbacks.
Also Read: Ripple vs. SEC – Legal Battle Extends To 2025 As XRP Holds Steady At $0.54 With 30% Volume Drop!
The race to launch XRP ETFs underscores a new chapter for the cryptocurrency, one that could redefine its market position. Should these ETFs gain approval, XRP may witness a surge in adoption and liquidity, further solidifying its place in the evolving financial landscape.
With XRP ETF filings gathering momentum, Garlinghouse’s optimism signals that Ripple is on the verge of significant growth. Despite legal uncertainties, the cryptocurrency is attracting institutional interest, setting the stage for a transformative period in its journey.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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