Ripple Labs CEO Brad Garlinghouse said that he expects an XRP exchange-traded fund (ETF) will eventually pass muster. According to him, the successful Bitcoin ETFs set the stage for XRP ETFs.
Bitcoin has attracted a lot of capital, and Garlinghouse’s comments have come as the demand for cryptocurrency ETFs surges. The first Bitcoin ETF was approved in January, and $17 billion has since flowed into the asset category, making it history’s fastest-growing category.
Now that interest has grown, there are expectations for similar products like the XRP ETF, which Garlinghouse considers an organic next step. Bitwise was the first, and they have already moved to file for an XRP ETF.
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Canary Capital was not to be outdone, and it, too, sought approval from the U.S. Securities and Exchange Commission (SEC). But surely Garlinghouse knows the journey ahead with the SEC often rejecting Bitcoin ETFs.
XRP ETFs Expected to Thrive Despite Legal Battle
Ripple’s ongoing fight with the SEC has not stopped the Company’s growth despite challenges. Garlinghouse is optimistic about the future—retail and institutional demand for XRP—although this does not appear to be coming anytime soon.
Earlier this year a U.S. District Judge ruled that XRP sold to retail investors is not a security. However, the ruling also stated that the sales of XRP to institutional investors amounted to securities sales.
The SEC has since appealed the decision and is trying to overturn certain parts of it that it didn’t like. Undaunted by the SEC’s resistance, Garlinghouse is instead focused on the broader demand for cryptocurrency investment products, such as ETFs. He believes the SEC’s stand against cryptocurrency ETFs will inevitably crumble due to market demands.
Ripple’s Chris Larsen Donates to Harris Campaign
Besides political circles, Ripple’s leadership has been universally active in funding candidates or causes that back their Bitcoin views. He’s also publicly backed pro-crypto lawyer John Deaton, who’s running for Senate in Massachusetts.
Garlinghouse urged his followers to support Deaton’s bid. By contrast, Garlinghouse has lambasted U.S. Senator Elizabeth Warren for her anti-crypto stance and accused her of spreading misinformation.
This is part of a broader push to promote good regulation for the cryptocurrency industry. The Ripple co-founder Chris Larsen also made political contributions.
Nearly $9.9 million goes to Future Forward, a political action committee backing Vice President Kamala Harris. Not only has he added his name to the Harris Victory Fund, but he has also directly donated to her campaign.
While Donald Trump has found a lot of support from the crypto industry, Larsen supports Harris because she gets the White House, the Bay Area, and the tech economy.
SEC May Approve XRP ETF Amid Rising Demand
If one XRP ETF is approved, it could be a significant event within the cryptocurrency market. Garlinghouse anticipates an XRP ETF will increase demand for digital assets, including from retail and institutional investors.
The success of Bitcoin ETFs “shows how little behind (it) we are with how we can do things like this with XRP,” he says. However, growing market demand may be forcing the SEC’s hand in approving cryptocurrency ETFs.
He is sure that XRP will follow Bitcoin’s path, where its ETF will eventually be approved. However, he thinks the SEC will crack when more and more investors become interested in digital assets.
Disclaimer
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