- Ripple's CEO has hinted at the potential for an XRP ETF following the SEC's approval of an Ethereum ETF.
- Brad Garlinghouse’s endorsement is consistent with his optimistic outlook for XRP in 2024.
- Regulatory challenges and Ripple’s SEC lawsuit may influence the timing of a possible XRP ETF.
Ripple CEO Brad Garlinghouse not directly hinted that XRP could possibly be the following cryptocurrency to launch an exchange-traded fund (ETF).
This follows the current approval of eight spot Ethereum ETFs by the U.S. Securities and Alternate Fee (SEC).
Spot XRP ETF Outlook Following Ethereum ETF Approval
Garlinghouse first hinted at the potential for an XRP ETF through a Twitter response to a touch upon a publish celebrating the U.S. Securities and Alternate Fee's approval of all Ethereum ETF functions, together with these from distinguished monetary establishments similar to BlackRock, Grayscale, VanEck and Constancy.
Garlinghouse described this week's occasions as “momentous” for the crypto business and likened the SEC's approval and passage of the FIT21 crypto invoice to a “hell freezes over” situation, a sentiment that resonated with many locally who’ve lengthy been hoping for comparable developments for his or her favourite cryptocurrencies.
In a February interview, Garlinghouse expressed the view that an XRP spot ETF was inevitable.
He harassed the significance of such funding automobiles for diversification functions, however declined to offer a particular timeline, citing regulatory uncertainty as a significant factor.
When requested about the potential for working with asset managers like BlackRock on an XRP ETF, Garlinghouse declined to remark, acknowledging that it’s a complicated concern.
Ripple's authorized battle hinders ETF approval
Regardless of Garlinghouse's enthusiasm, the street to an XRP ETF is fraught with obstacles.
The continuing litigation between Ripple and the SEC, which accuses the corporate of promoting unregistered securities, stays a significant hurdle. The end result of this authorized battle will probably play a key function in figuring out if and when an XRP ETF will be applied.
Whereas Ripple’s CEO is optimistic in regards to the EXP ETF being accredited, Bloomberg ETF analyst James Seifert urged that Solana (SOL) could also be a extra promising candidate than XRP.
Seifert argued that Solana's market place and broad enchantment make the corporate a robust contender, however cautioned {that a} Solana ETF might not grow to be a actuality till 2026, relying on regulatory developments and the institution of a CFTC-regulated futures market.
It's a disgrace you’ve got such a easy mindset. Let me clarify it to you in easy phrases.
Primarily based on the present regulatory framework, I don’t assume we’ll see Solana included in an ETF for a number of years, perhaps till 2026 on the earliest.
However Congress may theoretically pace up that timeline.
— James Seifert (@JSeyff) Could 22, 2024
Whereas no different cryptocurrency ETF functions have been filed to date, the approval of an Ethereum spot ETF and the legislative progress represented by the FIT21 cryptocurrency invoice symbolize a significant step ahead for the cryptocurrency house.
