The success of spot Bitcoin ETFs has sparked discussions around similar products for other cryptocurrencies, with Ripple (XRP) taking center stage. In a recent interview at Paris Blockchain Week, Ripple CEO Brad Garlinghouse weighed in on the prospect of a spot XRP ETF, offering both optimism and caution.
Garlinghouse’s comments echo his earlier stance in a Bloomberg interview, where he expressed his belief in the “inevitability” of a spot XRP ETF. This aligns with the broader industry trend as U.S. asset managers push for spot Ethereum ETFs, despite regulatory hurdles.
While Garlinghouse remains confident about the arrival of more crypto ETFs, he acknowledges the potential roadblocks. The SEC’s cautious approach, evident in the delayed decisions on spot Ethereum ETF filings, could significantly slow down the process. Additionally, the regulatory body reportedly mulling classifying Ethereum as a security adds another layer of complexity.
However, XRP might hold a distinct advantage. Unlike most other cryptocurrencies, XRP, alongside Bitcoin, has achieved a degree of “legal clarity” in the US. This could potentially position XRP more favorably for an ETF compared to other assets facing security classification uncertainties.
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Despite this optimism, challenges remain. The ongoing legal battle between Ripple and the SEC casts a shadow on the possibility of an XRP ETF. Furthermore, no asset manager has yet filed for a spot XRP ETF, although some in the community have targeted investment giant BlackRock.
The future of a spot XRP ETF hinges on navigating these complexities. Regulatory clarity surrounding XRP’s classification and a potential resolution in the SEC lawsuit could pave the way for its approval. Investors and the XRP community will be closely watching developments as the ETF landscape in the US continues to evolve.
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