Here’s Why XRP ETF Is ‘Inevitable’: Ripple’s CEO Chips

TL;DR

The approval of BTC and ETH spot ETFs has sparked speculation about the potential launch of an XRP spot ETF in the US, with Ripple CEO Brad Garlinghouse suggesting it is “inevitable”. However, the ongoing legal battle between the company and the SEC over allegations of unregistered securities offerings could complicate the green light for this financial product.

Is the next XRP ETF?

The cryptocurrency market has been booming since early 2024, with bitcoin (BTC) hitting a new all-time high of over $73,700 in mid-March and currently trading well above $70,000. This success could be attributed in part to the historic launch of certain financial products not available in the US a few months ago.

The products in question are spot BTC ETFs, which received the green light from the SEC in January. Last month, the agency also gave the thumbs up for spot ETH ETFs.

These financial vehicles give investors exposure to digital assets without having to buy them directly on exchanges. They simplify the investment process and mitigate some risks associated with handling cryptocurrencies (like self-custody, for example).

In recent months, many industry participants have speculated that a one-time XRP ETF may also see the light of day in America. Not long ago, Ripple CEO Brad Garlinghouse stated that this product, along with SOL ETFs and ADA ETFs, is “inevitable.”

More recently, he doubled down on his position, suggesting that investors want exposure to numerous ETFs, not just those with Bitcoin and Ethereum as underlying assets:

“To me, it just makes sense. You don’t want to have just a single-threaded asset exposure. I think people also forget that it wasn’t that long ago (before the SEC got involved) that XRP was the second most valuable digital asset.”

Garlinghouse’s first comments about the potential launch of an XRP spot ETF in the US came in February of this year. He then said that his company would welcome such a product. A few months later, the CEO outlined the company’s roadmap for the next three years. Interestingly, launching a one-time XRP ETF was not among the top priorities.

The difficulties with SEC

It is worth noting that the Securities and Exchange Commission (SEC) is the agency that approves or rejects these financial products in the United States. Those who have been following the crypto industry in recent years should be aware that the regulator and Ripple are involved in a legal battle that has recently entered its trial phase.

It all started in December 2020 when the SEC accused the company and some of its executives of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP. Ripple claimed three split wins at the track last year and, according to some, has the edge for a decisive victory.

The price of XRP rose substantially after each win, meaning that the final resolution of the case could increase volatility again. Those who are curious to know the specifics of the demand and its impact on the valuation of the asset, feel free to check out our dedicated video below:

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!