Ripple CEO Supports SEC’s Approval of Spot Bitcoin ETF
Ripple CEO Brad Garlinghouse has expressed his validation of the United States Securities and Exchange Commission’s decision to authorize financial institutions to offer investors spot Bitcoin exchange-traded fund (ETF) products. In a recent interview with FOX Business, Garlinghouse noted that the approval from the financial regulator is a step closer to bringing cryptocurrencies like Bitcoin into the mainstream.
Spot Bitcoin ETF Approval Boosts Institutional Investment
A spot Bitcoin ETF is an investment vehicle that allows financial companies to offer a BTC-backed asset to retail and institutional investors. The mechanism of the product mandates that the issuing companies purchase actual BTC, thereby boosting the asset’s demand. Garlinghouse emphasized that the newly approved product will enable more institutions to invest in the crypto industry, calling it “a very big deal.”
Ripple’s Alignment with Bitcoin’s Narrative
Garlinghouse explained Ripple’s role in the new movement, stating that Ripple’s mission as a global payment solution aligns with Bitcoin’s narrative as an electronic payment system. He believes that other financial institutions’ efforts to invest in the asset class also support this alignment.
Record Trading Volumes for Spot Bitcoin ETFs
Three days after the SEC approved the first batch of ETF products, trading volumes among financial institutions offering the investment vehicle soared to about $10 billion. This record shows significant interest from investors in the Bitcoin-focused product.
Gensler Criticized for Lack of Regulatory Clarity
After applauding the SEC’s decision, Garlinghouse criticized SEC Chairman Gary Gensler for prioritizing hiring more lawyers to litigate the industry instead of providing clearer regulatory guidelines. Garlinghouse believes that most of the crypto industry wants to follow the rules and that Gensler’s approach is a political liability.
Hot Take: Ripple CEO Supports Spot Bitcoin ETF Approval and Calls for Clearer Regulations
Ripple CEO Brad Garlinghouse has expressed his support for the SEC’s authorization of spot Bitcoin exchange-traded fund (ETF) products. He believes that this approval is a significant step towards mainstream adoption of cryptocurrencies like Bitcoin. The spot Bitcoin ETF allows more institutions to invest in the crypto industry and has seen record trading volumes since its approval. However, Garlinghouse also criticized SEC Chairman Gary Gensler for lacking regulatory clarity and prioritizing enforcement over providing clear guidelines. Garlinghouse believes that the industry wants to follow the rules and that Gensler’s approach is a political liability.
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