- Ripple CEO Hints at Potential XRP ETF After SEC Approval of Ethereum ETF
- Brad Garlinghouse's help is in keeping with his bullish outlook for XRP in 2024.
- Regulatory challenges and Ripple SEC lawsuit have an effect on timing of potential XRP ETFs.
Ripple CEO Brad Garlinghouse hinted not directly that XRP may very well be the subsequent cryptocurrency to see exchange-traded funds (ETFs) launch.
This follows the current approval of eight spot Ethereum ETFs by the US Securities and Change Fee (SEC).
Spot XRP ETF Prospects After Approval of Ethereum ETFs
Garlinghouse's delicate nod to the potential for an XRP ETF got here through his response on X (previously Twitter) to a touch upon his submit celebrating the approval of all Ethereum ETF purposes by the US SEC. Among the many accepted ether ETF purposes had been these from main monetary entities reminiscent of BlackRock, Grayscale, VanEck and Constancy.
Garlinghouse described the week's occasions as “important” for the crypto business, likening the SEC's approval and passage of the FIT21 cryptocurrency invoice to a “hell freezes over” state of affairs, a sentiment that resonated with many members of the group who’ve lengthy anticipated comparable developments for his or her beloved cryptocurrency.
Earlier in an interview in February, Garlinghouse expressed his perception {that a} spot XRP ETF was inevitable.
He emphasised the significance of such an funding product for diversification functions, however kept away from committing to a selected timeline, citing regulatory uncertainties as a significant factor.
When requested about doubtlessly working with asset managers like BlackRock for the XRP ETF, Garlinghouse remained non-committal, acknowledging the complexities concerned.
Mass authorized battles standing in the best way of ETF approval
Regardless of Garlinghouse's enthusiasm, the street to the XRP ETF is fraught with challenges.
A major impediment stays the continuing litigation between Ripple and the SEC, which has accused Ripple of promoting unregistered securities. The result of this authorized battle will doubtless play a key position in figuring out the feasibility and timing of the XRP ETF.
Whereas Ripple's CEO is optimistic about EXP ETF approval, Bloomberg ETF analyst James Seyffart instructed that Solana (SOL) may very well be a extra doubtless candidate than XRP.
Seyffart argued that Solana's market place and broader attraction make it a robust contender, though he cautioned that the Solana ETF might not materialize till 2026, relying on regulatory developments and the institution of a CFTC-regulated futures market.
I'm sorry you’ve got a easy thoughts. I'll kill you.
Based mostly on the present regulatory framework, I don't assume Solana will likely be within the ETF for a number of years. Most likely after 2026 on the earliest.
However Congress can theoretically velocity up that timeline.
— James Seyffart (@JSeyff) Might 22, 2024
Whereas no different crypto ETF purposes have been filed so far, the approval of the Ethereum spot ETF and the legislative progress marked by the FIT21 crypto regulation characterize important progress for the cryptocurrency sector.
