Ripple CEO signals potential for an XRP ETF following Ethereum ETFs approval
- Ripple CEO hints at potential XRP ETFs following Ethereum ETF approvals by SEC.
- Brad Garlinghouse’s endorsement aligns along with his optimistic outlook for XRP in 2024.
- Regulatory challenges and Ripple’s SEC lawsuit impression the timing of potential XRP ETFs.
Ripple CEO Brad Garlinghouse has not directly hinted that XRP might be the subsequent cryptocurrency to see the launch of exchange-traded funds (ETFs).
This follows the latest approval of eight spot Ethereum ETFs by the U.S. Securities and Change Fee (SEC).
Spot XRP ETF prospects publish Ethereum ETFs approval
Garlinghouse’s refined nod to the potential for XRP ETFs got here by way of his response on X (previously Twitter) to a touch upon his publish celebrating the US SEC’s approval of all Ethereum ETF functions. Among the many permitted ether ETF functions have been these from distinguished monetary entities resembling BlackRock, Grayscale, VanEck, and Constancy.
Describing the week’s occasions as “momentous” for the crypto trade, Garlinghouse likened the SEC’s approvals and the passing of the FIT21 crypto invoice to a “hell freezes over” state of affairs, a sentiment that resonated with many in the neighborhood, who’ve lengthy anticipated related developments for his or her favored cryptocurrency.
Earlier on in an interview in February, Garlinghouse had expressed his perception that an XRP spot ETF was inevitable.
He emphasised the significance of such an funding product for diversification functions however shunned committing to a selected timeline, citing regulatory uncertainties as a significant factor.
When questioned about potential collaborations with asset managers like BlackRock for an XRP ETF, Garlinghouse remained non-committal, acknowledging the complexities concerned.
Ripple authorized battles standing in the best way of an ETF approval
Regardless of Garlinghouse’s enthusiasm, the trail to an XRP ETF is fraught with challenges.
The continuing lawsuit between Ripple and the SEC, which has accused Ripple of promoting unregistered securities, stays a big hurdle. The end result of this authorized battle will possible play an important function in figuring out the feasibility and timing of an XRP ETF.
Whereas Ripple CEO is optimistic of an EXP ETF approval, Bloomberg ETF analyst James Seyffart instructed that Solana (SOL) could be a extra possible candidate than XRP.
Seyffart argued that Solana’s market place and broader attraction make it a robust contender, although he cautioned {that a} Solana ETF won’t materialize till 2026, contingent upon regulatory developments and the institution of a CFTC-regulated futures market.
I am sorry you are easy minded. Unwell dumb it down for you.
Based mostly on present regulatory framework I do not suppose Solana will probably be in an ETF for a number of years. Seemingly past 2026 at earliest.
However Congress can theoretically speed up that timeline.
— James Seyffart (@JSeyff) Could 22, 2024
Whereas no different crypto ETF functions have been made up to now, the approval of Ethereum spot ETFs and the legislative developments marked by the FIT21 crypto invoice signify important progress for the cryptocurrency sector.