🚀 Crypto Here’s Why XRP ETF is ‘Inevitable:’ Ripple CEO Chips in

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TL;DR

• The approval of spot BTC and ETH ETFs has led to speculation about the potential launch of a spot XRP ETF in the US, with Ripple’s CEO Brad Garlinghouse suggesting it’s “inevitable.”
• However, the ongoing legal battle between the company and the SEC over allegations of unregistered securities offerings might complicate the green light of such a financial product.

Is XRP ETF Coming Next?​

The cryptocurrency market has been booming since the beginning of 2024, with bitcoin (BTC) hitting a new all-time high of over $73,700 in mid-March and currently trading well above the $70K mark. This success could be partially attributed to the historical launch of certain financial products unavailable in the US several months ago.

The products in question are spot BTC ETFs, which received the SEC’s green light in January. Last month, the agency gave the thumbs up for spot ETH ETFs, too.

Those financial vehicles provide investors with exposure to digital assets without having to purchase them directly from exchanges. They simplify the investment process and mitigate some risks associated with handling cryptocurrencies (such as self-custody, for example).

In the past few months, many industry participants have speculated that a spot XRP ETF can also see the light of day in America. Not long ago, Ripple’s CEO – Brad Garlinghouse – claimed that such a product, alongside SOL ETFs and ADA ETFs, is “inevitable.”

Most recently, he doubled down on his stance, suggesting that investors want exposure to numerous ETFs, not only those with Bitcoin and Ethereum as underlying assets:

“To me, it only makes sense. You don’t want to have just a single-threaded asset exposure. I think people also forget that it wasn’t that long time ago (before the SEC got involved) that XRP was the second-most valuable digital asset.”

Garlinghouse’s first comments on the potential launch of a spot XRP ETF in the US came in February this year. Back then, he said his company would welcome such a product. A few months later, the CEO outlined the firm’s roadmap for the next three years. Interestingly, the launch of a spot XRP ETF was not among the top priorities.

The Difficulties With the SEC​

It is worth noting that the Securities and Exchange Commission (SEC) is the agency approving or rejecting such financial products in the United States. Those who have been following the crypto industry in the past few years must be aware that the regulator and Ripple are involved in a legal battle that recently entered its 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 in an unregistered securities offering by selling XRP. Ripple secured three partial court victories last year, and according to some, it has the upper hand for a decisive victory.

XRP’s price spiked substantially after each triumph, meaning the eventual resolution of the case might trigger enhanced volatility once again. Those curious to learn about the lawsuit’s specifics and its impact on the asset’s valuation, feel free to check our dedicated video below:


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