thecryptobasic.com
The Ripple CEO Brad Garlinghouse recently disclosed that he would welcome the idea of a spot-based XRP ETF, declaring that the launch of the investment product is inevitable.
Garlinghouse made these comments while speaking in a recent interview with Bloomberg’s Kailey Leinz. The Ripple CEO discussed the current state of the cryptocurrency landscape in the United States, as well as the regulatory environment within the industry.
Ripple CEO Would Welcome an XRP ETF
Addressing the possibility of a spot XRP ETF in the U.S., Garlinghouse expressed openness to the concept and welcomed the prospect of its launch.
This comes amid ongoing discussions centered around the potential launch of a spot XRP or Ethereum ETF following the introduction of the Bitcoin-based products.
Ripple CEO Brad Garlinghouse says he would "certainly welcome" an XRP ETF https://t.co/qjdDlgRGof pic.twitter.com/5qob31M65M
— Bloomberg TV (@BloombergTV) February 20, 2024
While Ethereum ETF products have gained more traction, with asset managers like BlackRock, 21Shares, and Ark Invest filing for approval from the U.S. SEC, the fate of XRP-based ETFs remains uncertain.
Despite several filings, regulatory decisions for Ethereum ETFs are currently pending, with delays contributing to the ongoing anticipation in the market.
Meanwhile, the prospect of an XRP ETF in the U.S. was briefly glimpsed when an alleged filing supposedly from BlackRock surfaced on the Delaware ICIS last year. However, BlackRock promptly refuted the legitimacy of the filing, categorizing it as a fake.
Despite the absence of official filings from asset managers for an XRP ETF, Garlinghouse believes that introducing such a product is “inevitable.” Essentially, he expects the crypto industry to witness the launch of ETFs based on multiple assets.
In his words:
“We would certainly welcome it. I think it’s inevitable that there will be multiple ETFs around different tokens. You’ll even see ETFs potentially around baskets that also further diversify that risk.”
Garlinghouse’s comments emphasize his conviction that traditional asset managers would delve further into the cryptocurrency landscape as the industry matures. He sees the emergence of numerous ETFs on various assets, with XRP being among the highlighted candidates.
The Possibility of a Launch
Based on this conviction, Leinz asked the Ripple CEO if he is currently holding discussions with some of the largest asset managers, such as BlackRock, to see if there is a potential launch of an XRP ETF. Garlinghouse refrained from providing a direct answer, mentioning that BlackRock had made some comments publicly.
Interestingly, BlackRock’s CEO Fink also took a similar route when asked about the possibility of the launch of an XRP ETF. Speaking to Fox Business’ Charles Gasparino last month, Fink noted that he cannot discuss the subject on air, sparking curiosity among XRP proponents.
Speculation quickly emerged that Fink’s response could mean the asset manager might be looking to launch the product. However, in a subsequent disclosure, Gasparino revealed that BlackRock has no plans to launch the product.
In his recent Bloomberg interview, Garlinghouse emphasized that the launch of the XRP ETF would “make sense” to the XRP community. He called attention to the fact that XRP was the second-largest crypto asset before the SEC lawsuit, underscoring its prominence in the crypto industry.
According to the Ripple CEO, the long-term aim of these assets is to help solve real-world problems by creating utility. He acknowledged Bitcoin’s role as a store of value in solving real-world problems, stressing that XRP also provides real-world utility as a medium for fast and cheap transactions.