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Why Ripple’s Brad Garlinghouse Thinks an XRP ETF Is Inevitable

Why Ripple’s Brad Garlinghouse Thinks an XRP ETF Is Inevitable

DailyCoinDailyCoin2024/10/24 17:45
By:DailyCoin
  • Ripple’s top brass has claimed an XRP ETF approval is just a matter of time.
  • Institutional demand for crypto ETFs has surged, signaling adoption.
  • Legal hurdles have persisted, but optimism has grown for XRP’s market future.

Ripple CEO Brad Garlinghouse has voiced confidence that an XRP exchange-traded fund (ETF) is inevitable, pointing to the success of Bitcoin ETFs as a roadmap for Ripple’s own token. At the 8th Annual Washington DC Fintech Week, Garlinghouse highlighted the growing demand for crypto ETFs and suggested XRP could be next in line for approval.

With Bitcoin ETFs amassing billions of dollars in investment, the push for crypto ETFs is gaining momentum. XRP’s approval for an ETF could be a major turning point, offering institutional and retail investors a simpler way to access the asset without needing to hold it directly. 

Why an XRP ETF Matters

Introducing an XRP ETF would expand the asset’s reach, potentially driving liquidity and interest from new market participants. Institutional interest in cryptocurrencies continues to climb, and the token stands to gain from being included in financial products like ETFs. 

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Garlinghouse stressed that the rapid inflows into Bitcoin ETFs highlight the growing appetite for crypto investments. Bitwise Asset Management has already filed for an XRP ETF, with more firms expected to join the race.

Garlinghouse believes approval will bring significant upside. He predicts that XRP ETFs could push the token’s price upward once regulatory barriers fall while injecting much-needed liquidity into the market. However, legal challenges remain a critical obstacle.

Ripple’s SEC Lawsuit: A Cloud Over XRP’s Future

Ripple’s ongoing legal battle with the SEC casts a long shadow over its ETF ambitions. The lawsuit, which claims XRP was sold as an unregistered security, has created uncertainty for Ripple and its investors.

In 2022, Ripple secured a partial victory when a judge ruled that XRP sales to retail investors did not violate securities laws. Despite this, the SEC remains determined to pursue the case, creating a roadblock for XRP’s ETF potential. Garlinghouse remains confident about Ripple’s chances, but the legal cloud could slow the approval path.

An XRP ETF would be a landmark moment, potentially transforming the token into a mainstream financial asset and deepening its integration into global markets.

On the Flipside

  • The SEC’s ongoing legal case against Ripple adds uncertainty to the ETF approval process as regulatory hurdles would delay the launch in the near term.
  • Market volatility could persist until legal issues are fully resolved.
  • Institutional investors might remain cautious due to the legal challenges surrounding XRP.

Why This Matters

An XRP ETF would make the token accessible to a wider audience, potentially increasing demand and boosting prices. For both retail and institutional investors, an ETF would provide a more secure and regulated way to invest in the token. The approval of such a product could mark a turning point in XRP’s legitimacy within the financial system.

Wondering how a Ripple ETF could affect its price? This article dives into investment firms’ rising interest and the approval debate:
Why an XRP ETF Approval Could Be Closer Than You Think

Curious about Canary Capital’s spot XRP ETF launch? This article explores their strategy to navigate the SEC’s stance and push for ETF approval:
Canary Capital’s XRP ETF Bid—How They Plan to Win SEC Approval

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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