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Ripple CEO Embraces Prospect of XRP ETF, Predicts Others to Follow

source-logo  cryptonews.com 21 February 2024 04:08, UTC

Source: Midjourney

Ripple CEO Brad Garlinghouse said he’s all for an XRP ETF, indicating that investors will appreciate the diversification it would bring.

“I think it only makes sense,” he said in a Bloomberg interview on Tuesday. “There will be other ETFs too. It’s a little like the earliest days of the stock market. You don’t really want exposure to one stock, or one company. You want to typically think about diversifying risk… and so I think we will see other ETFs,” he added, noting that it’s difficult to predict exactly when this will occur.

When questioned about which issuers Ripple might be discussing a potential ETF with, Garlinghouse declined to comment.

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

SEC Caved to Court Pressure on Spot Bitcoin ETFs, Ripple CEO Says

In January, the US Securities & Exchange Commission authorized 11 Spot Bitcoin ETFs, introducing an additional investment mechanism for Wall Street.

This followed Grayscale’s legal victory over the SEC last year, where judges told the agency to reconsider the asset manager’s request to change its bitcoin trust (GBTC) into an ETF.

Following Grayscale’s victory, SEC Chair Gary Gensler said the regulator would reconsider applications in light of those court decisions.

Addressing this, Garlinghouse pointed out that the reality is the SEC and Gensler were pushed into approving the Bitcoin ETFs.

Garlinghouse Warns US Risks Losing Crypto Edge

Discussing the forthcoming US election, Garlinghouse highlighted the need for the US to reclaim a leading role in crypto regulation.

“We are behind other major countries like the UK. The European Union, as a 27-country membership, is ahead of us,” he said. “Over 20% of the US population already has direct or indirect exposure to crypto and so it only makes sense it’s an issue.”

Ripple, along with other contributors, recently donated about $80m to the Fairshake political action committee (PAC) to sway US policymakers and back candidates favorable to cryptocurrency.

“Personally my donations are bipartisan, but certainly pro-crypto, and that’ll continue to be the case,” Garlinghouse said.

Acquisitions in Custody and Tokenization

Earlier this month, Ripple announced its acquisition of New York-based digital asset platform Standard Custody and Trust Company. Upon completion, the acquisition will grant Ripple sole ownership of Standard Custody. It will also grant the company access to the platform’s trust charter and money transmitter licenses to expand its collection of regulatory licenses.

Further diversifying its business reach, Ripple acquired Swiss blockchain firm Metaco for $250m late last year. This move marked its initial foray into asset tokenization, signaling a potential future expansion into this area.

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