- Ripple CEO Brad Garlinghouse says it’s “inevitable” that the company’s XRP cryptocurrency will be offered through an exchange-traded fund (ETF).
- Garlinghouse cited the demand for Bitcoin ETFs, with $1.7 billion flowing into the fastest-growing ETF since their approval in January.
- Bitwise Asset Management Inc. recently became the first firm to file for an XRP ETF.
Ripple CEO Brad Garlinghouse stated in a recent interview that a cryptocurrency exchange-traded fund (ETF) for XRP is inevitable. His comments come as Ripple continues its legal battle with the SEC over whether XRP is an unregistered security.
Background on Ripple’s Dispute with the SEC
For years, Ripple has been embroiled in a dispute with the Securities and Exchange Commission (SEC) over what constitutes a security. The SEC filed a lawsuit in 2020 alleging that Ripple sold XRP as an unregistered security. Ripple maintains that XRP is a currency, not a security. The outcome of this case could have major implications for the classification and regulation of cryptocurrencies.
Surging Demand for Crypto ETFs
Garlinghouse pointed to the surging demand for cryptocurrency ETFs as evidence that a XRP ETF is on the horizon. The first Bitcoin ETFs were approved in 2021. Since then, over $17 billion has flowed into Bitcoin ETFs, with one becoming the fastest growing ETF in history.
Garlinghouse argued this demonstrates clear institutional and retail demand to access the cryptocurrency asset class through ETFs. As a top 5 cryptocurrency, he believes it’s only a matter of time before an ETF for XRP is approved.
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The Future is Bright for Crypto ETFs
Cryptocurrency ETFs are seeing exponential growth and interest from mainstream finance. Major players like Fidelity have filed for a crypto ETF, signaling the inevitable integration of digital assets into traditional finance.
Ripple stands to benefit significantly from an XRP ETF given its large share of the XRP market. The company seems confident that the crypto ETF wave will eventually make its way to XRP. Despite its ongoing legal issues, Ripple sees a bright future for XRP ahead.
