Here’s Why the XRP ETF Is ‘Inevitable’: ripple CEO Chips
TL;DR
- The approval of spot BTC and ETH ETFs has sparked speculation about the potential launch of a spot XRP ETF in the US, with Ripple CEO Brad Garlinghouse suggesting it is “inevitable.”
- However, the ongoing legal battle between the company and the SEC over allegations of unregistered securities offerings could make it difficult to green light such a financial product.
The cryptocurrency market has been growing rapidly since the beginning of 2024; bitcoin (BTC) rose above its all-time high of $73,700 in mid-March and is now trading well above $70,000. Thismay be success be partially attributed A few months ago to the historic launch of some financial products not available in the US.
The products in question are spot BTC ETFs, which received the green light from the SEC in January. Last month, the agency also welcomed spot ETH ETFs.
These financial instruments provide visibility to investors into digital assets without having to buy directly from exchanges. They simplify the investment process and reduce some of the risks associated with handling cryptocurrencies (such as self-custody).
Over the past few months, many industry participants have speculated that the spot XRP ETF will also see the light of day In America. Recently CEO of Ripple – Brad Garlinghouse – He claimed that such a product, alongside SOL ETFs and ADA ETFs, was “inevitable.”
Finally, hello doubled Regarding his stance, he suggests that investors want exposure to a multitude of ETFs, not just Bitcoin and Ethereum as underlying assets:
Garlinghouse’s first comments regarding the potential launch of a spot XRP ETF in the US came in February this year. hello back then aforementioned company would welcome such a product. CEO a few months later summarized The company’s road map for the next three years. Interestingly, the launch of the spot XRP ETF was not among the top priorities.
SEC’s Challenges
It is worth noting that the Securities and Exchange Commission (SEC) is the agency that approves or denies such financial products in the United States. Them who died Those who have been following the crypto industry over the last few years should be aware of the regulatory body and Ripple’s involvement. a legal battle It recently entered the trial phase.
It all started in December 2020, when the SEC accused the firm and some of its executives of illegally raising more than $1.3 billion from an unregistered securities offering by selling XRP. Ripple has had three partial court victories in the past year and some say it has the edge for an outright victory.
price of XRP spiked significantly after each win, which means that the final resolution of the case could trigger increased volatility once again. Those who are interested in learning To learn about the details of the case and its impact on the asset’s valuation, feel free to watch our exclusive video below:
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