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Is XRP ETF On the Cards? Ripple CEO Says Ripple Would Welcome It

by BSC News

February 21, 2024

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Garlinghouse sees the approval of a Bitcoin ETF as a sign that courts are willing to challenge the SEC's resistance and expressed optimism about the potential approval of an XRP ETF.

Ripple CEO Brad Garlinghouse expressed openness to the possibility of an exchange-traded fund (ETF) for the company's token XRP during a recent interview with Bloomberg.

Garlinghouse highlighted the significance of Ripple's legal triumphs against the SEC, particularly the US court's declaration that XRP is not a security. These victories, which also included the dismissal of the lawsuit against Garlinghouse and Ripple Chairman Chris Larsen, provided a positive backdrop for considering an XRP ETF.

Optimism Amid Regulatory Developments

Addressing the topic of an XRP ETF, Garlinghouse drew parallels to the stock market's early days, emphasizing the importance of diversification for managing risk. He expressed optimism about the potential approval of an XRP ETF, citing the approval of a Bitcoin ETF as an indication that courts are willing to challenge the SEC's resistance.

"I think it only makes sense there will be other ETFs too, It’s a little like, you know, the earliest days of the stock market,” Garlinghouse said. “You don’t really want exposure to one stock or one company. You want to typically think about diversifying risk." 

Garlinghouse stated that Ripple would welcome an XRP ETF, viewing it as an inevitable development with multiple ETFs around different tokens.

XRP ETF Approval ‘Makes Sense’

Despite not providing details on engagements with large ETF holders like BlackRock, Garlinghouse agreed that the potential approval makes sense for the XRP community. 

In November 2023, a leaked filing hinted at BlackRock's pursuit of an XRP ETF. However, the asset manager clarified that the filing was fake. Currently, XRP is not a US ETF, but XRP exchange-traded products (ETPs) are available in European markets from Coinshares and 21Shares.

While the exact timeline for the introduction of ETFs remains uncertain, Garlinghouse suggested that the landscape is evolving.

XRP's price hovers around $0.538, experiencing a 4.7% dip in 24 hours, alongside broader crypto market movements ahead of the FOMC minutes.

Disclaimer

Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article

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