Ripple CEO: XRP ETF Approval is ‘Inevitable’
Ripple CEO Brad Garlinghouse is optimistic about the future of XRP, stating that approval for an exchange-traded fund (ETF) is “inevitable.” This confidence follows recent successful ETF launches for Bitcoin and Ethereum, which have attracted significant institutional interest.
Earlier this month, Bitwise filed for an XRP ETF, aiming to provide investors with exposure to the cryptocurrency without requiring them to hold it directly. Another asset manager, Canary Capital, has also submitted a similar application. Despite Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) since 2020, Garlinghouse believes the demand from both institutional and retail investors will drive the approval process.
While the SEC has been hesitant, it ultimately approved Bitcoin and Ethereum ETFs, suggesting a potential path forward for XRP. Ripple currently ranks as the seventh largest cryptocurrency by market capitalisation, with its utility in international payments making it a strong contender for ETF inclusion.
Legal Challenges Loom
Ripple’s legal struggles have cast a shadow over its ETF aspirations. The SEC’s lawsuit alleges that XRP was sold as an unregistered security, complicating the approval process. However, Ripple achieved a partial victory last year when a judge ruled that sales to retail investors did not violate securities laws. The SEC is appealing this decision, which adds uncertainty but also fuels Garlinghouse’s belief in Ripple’s strong legal position.
The Potential Impact of an XRP ETF
The introduction of an XRP ETF could significantly enhance the token’s market presence, potentially attracting new investors and increasing liquidity. Garlinghouse highlighted the rapid inflows into Bitcoin ETFs as indicative of growing demand for crypto investments, which XRP could also benefit from.
As Ripple navigates the complexities of its ongoing legal battle, the possibility of an ETF approval remains a focal point for investors and market analysts alike. If successful, it could mark a transformative moment for XRP, solidifying its position as a mainstream financial asset.
