Outside Source
- Ripple CEO hints at potential XRP ETFs following Ethereum ETF approvals by SEC.
- Brad Garlinghouse’s endorsement aligns with his optimistic outlook for XRP in 2024.
- Regulatory challenges and Ripple’s SEC lawsuit impact the timing of potential XRP ETFs.
Ripple CEO Brad Garlinghouse has indirectly hinted that XRP could be the next cryptocurrency to see the launch of exchange-traded funds (ETFs).
This follows the recent approval of eight spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC).
Spot XRP ETF prospects post Ethereum ETFs approval
Garlinghouse’s subtle nod to the possibility of XRP ETFs came via his reaction on X (formerly Twitter) to a comment on his post celebrating the US SEC’s approval of all Ethereum ETF applications. Among the approved ether ETF applications were those from prominent financial entities such as BlackRock, Grayscale, VanEck, and Fidelity.
Describing the week’s events as “momentous” for the crypto industry, Garlinghouse likened the SEC’s approvals and the passing of the FIT21 crypto bill to a “hell freezes over” scenario, a sentiment that resonated with many in the community, who have long anticipated similar advancements for their favored cryptocurrency.
Earlier on in an interview in February, Garlinghouse had expressed his belief that an XRP spot ETF was inevitable.
He emphasized the importance of such an investment product for diversification purposes but refrained from committing to a specific timeline, citing regulatory uncertainties as a major factor.
When questioned about potential collaborations with asset managers like BlackRock for an XRP ETF, Garlinghouse remained non-committal, acknowledging the complexities involved.
Ripple legal battles standing in the way of an ETF approval
Despite Garlinghouse’s enthusiasm, the path to an XRP ETF is fraught with challenges.
The ongoing lawsuit between Ripple and the SEC, which has accused Ripple of selling unregistered securities, remains a significant hurdle. The outcome of this legal battle will likely play a crucial role in determining the feasibility and timing of an XRP ETF.
While Ripple CEO is optimistic of an EXP ETF approval, Bloomberg ETF analyst James Seyffart suggested that Solana (SOL) might be a more probable candidate than XRP.
Seyffart argued that Solana’s market position and broader appeal make it a strong contender, though he cautioned that a Solana ETF might not materialize until 2026, contingent upon regulatory developments and the establishment of a CFTC-regulated futures market.
I’m sorry you’re simple minded. Ill dumb it down for you.
Based on current regulatory framework I don’t think Solana will be in an ETF for multiple years. Likely beyond 2026 at earliest.
But Congress can theoretically accelerate that timeline.
— James Seyffart (@JSeyff) May 22, 2024
While no other crypto ETF applications have been made so far, the approval of Ethereum spot ETFs and the legislative advancements marked by the FIT21 crypto bill signify significant progress for the cryptocurrency sector.
This article first appeared at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison
