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Ripple CEO expresses confidence in the potential approval of an XRP spot-based exchange-traded fund (ETF) in the United States.
Speaking in a virtual interview with Bloomberg at the 8th annual DC Fintech Week, the Ripple CEO asserted that it is inevitable that an XRP ETF will be approved.
The Crypto Basic shared an excerpt of Garlinghouse’s XRP ETF commentary on X today.
Ripple CEO on Bloomberg: XRP ETF is just inevitable.pic.twitter.com/lM5X1gAob7
— TheCryptoBasic (@thecryptobasic) October 24, 2024
XRP Price to Surge Amid Growing Institutional Interest
He emphasized that institutional interest in XRP has skyrocketed lately, leading to the filings of multiple ETFs tied to the seventh-biggest cryptocurrency by market cap. Bitwise and Canary Capitals submitted separate applications to the SEC for spot XRP ETFs earlier this month.
Additionally, Grayscale also filed with the SEC to convert its digital large-cap fund, which contains five crypto assets, including XRP, into a basket ETF.
Highlighting the significance of the basket ETF, Garlinghouse said the product signals growing institutional participation in the crypto space.
Per Garlinghouse, the increased participation of institutional investors in the crypto space is reflected in the significant demand for Bitcoin ETFs. The Ripple CEO noted that the demand for Bitcoin ETFs has led to an inflow of $17 billion, making it the fastest-growing ETF in the world. For context, Bitcoin ETFs currently boast a total inflow of $21.41 billion, according to data from Farside.
Interestingly, Garlinghouse predicted that this surging institutional interest would “create an upward pressure on the prices of different cryptos, including XRP.”
This indicates that the Ripple CEO expects the active participation of institutional investors, as reflected in the growing demand for crypto ETFs, to potentially result in a surge in XRP price.
XRP ETFs Will Perform Well
When asked about the demand for XRP ETF, especially given that Ethereum ETFs have not recorded significant flows like Bitcoin’s, Garlinghouse refuted the notion that ETH spot ETFs have not had an incredible performance.
“If you look at the market dominance of Bitcoin compared to ETH, you would see that the ratio is about the same in terms of ETF participation. So I think the ETH ETF has done very well,” Garlinghouse remarked.
He emphasized that XRP ETF would also perform well and attract significant demand, citing the active community backing XRP globally.