- Ripple CEO hints at potential XRP ETFs following Ethereum ETF approvals by SEC.
- Brad Garlinghouse’s endorsement aligns together 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 following 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 submit Ethereum ETFs approval
Garlinghouse’s delicate nod to the potential of XRP ETFs got here by way of his response on X (previously Twitter) to a touch upon his submit celebrating the US SEC’s approval of all Ethereum ETF functions. Among the many accredited ether ETF functions have been these from distinguished monetary entities comparable to BlackRock, Grayscale, VanEck, and Constancy.
Describing the week’s occasions as “momentous” for the crypto business, 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 kept away from committing to a particular 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 continued lawsuit between Ripple and the SEC, which has accused Ripple of promoting unregistered securities, stays a big hurdle. The result of this authorized battle will probably play an important position 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 urged that Solana (SOL) could be a extra possible candidate than XRP.
Seyffart argued that Solana’s market place and broader attraction make it a powerful contender, although he cautioned {that a} Solana ETF may not materialize till 2026, contingent upon regulatory developments and the institution of a CFTC-regulated futures market.
I am sorry you are easy minded. Ailing dumb it down for you.
Based mostly on present regulatory framework I do not assume 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 to this point, the approval of Ethereum spot ETFs and the legislative developments marked by the FIT21 crypto invoice signify important progress for the cryptocurrency sector.
