Ripple CEO Welcomes Spot XRP ETF
Brad Garlinghouse, the CEO of Ripple Labs, has expressed his support for the creation of a spot exchange-traded fund (ETF) for XRP, the native token of the Ripple payment protocol. Garlinghouse believes that multiple ETFs for different tokens are inevitable and would help diversify the risk associated with trading these investment vehicles. He also suggested that there may be basket ETFs in the future, which would contain a collection of various crypto assets.
Garlinghouse compared the current state of the crypto ETF space to the early days of the stock market, highlighting the importance of diversifying risks and portfolios. He mentioned that additional funds would eventually be launched to further diversify the risk from spot Bitcoin ETFs, although predicting their exact launch time is challenging.
“You know, the sad reality of what we saw with the Bitcoin ETF is it was only because the court forced the SEC’s hand and really chair Gensler’s hand that we saw that finally come to fruition. And look, in my opinion, it makes these markets safer; it makes them more robust. And so, this is good for the investment community,” Garlinghouse said.
BlackRock’s Potential XRP ETF
When asked about discussions with asset manager BlackRock regarding a spot XRP ETF, Garlinghouse chose not to comment. While acknowledging BlackRock’s public statements on the matter, he emphasized that Ripple is not the only player in the XRP ecosystem and that a spot XRP ETF would benefit the overall XRP community.
Past discussions surrounding a potential spot XRP ETF have been overshadowed by events like a fake filing for the fund in Delaware. In November, news emerged that BlackRock had registered a spot XRP ETF in Delaware after applying for its Ethereum Trust. However, the news was later confirmed to be false, and the case was handed over to the appropriate authorities.
Despite the interest in an XRP ETF, analysts believe that its approval is unlikely in the near future due to Ripple’s ongoing legal battle with the US Securities and Exchange Commission.
Hot Take: A Potential Boost for XRP
If a spot XRP ETF were to be approved, it could have significant implications for the XRP market:
- Increased accessibility: An XRP ETF would provide a more convenient way for investors to gain exposure to XRP without directly purchasing and storing the digital asset.
- Liquidity boost: The creation of an ETF often leads to increased trading volume and liquidity in the underlying asset, potentially benefiting XRP.
- Market confidence: Regulatory approval of an XRP ETF would signal a level of legitimacy and trust in both XRP and the broader cryptocurrency market.
While the road to an approved XRP ETF may be challenging, it remains an exciting possibility that could shape the future of XRP as an investment option. Keep an eye on developments in this space as they unfold.
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