Ripple CEO Brad Garlinghouse believes an XRP ETF (exchange-traded fund) will soon be launched in the US. The financial instrument would offer investors access to Ripple’s XRP token without direct purchase.
Meanwhile, XRP remains marred in legal challenges that could extend until July 2025.
XRP ETF Is Only A Matter of Time
Speaking to Bloomberg, Garlinghouse said XRP is in line to become the next financial instrument to offer institutional investors exposure to crypto in the US through an ETF. He said the product was inevitable, and it was just a matter of time before approval came.
The remarks came amid apparent demand for such financial instruments in the US, especially for Bitcoin ETFs. This financial instrument, which hit markets on January 11, continues to offer investors indirect exposure to Bitcoin. Demand continues to abound, seen with massive positive flows as data on SoSoValue shows a cumulative total net inflow of $21.34 billion.
“We clearly are seeing that ETFs have been popular…The United States SEC was dragged, kicking and screaming, to approve the Bitcoin ETF in January…$17 billion has flowed into the fastest-growing ETF in history. It clearly demonstrates that there’s demand from institutions and retail to access the asset class,” Garlinghouse said.
BeInCrypto data shows Ripple’s XRP token is up by a modest 0.21% on this news, trading at $0.53.
Read more: XRP ETF Explained: What It Is and How It Works
Meanwhile, two firms, Bitwise and Canary Capital, have already applied to offer XRP ETFs. For Canary Capital, its fund would track XRP’s value using the CME CF Ripple dollar reference rate. On the other hand, Bitwise recently revised its filing with the US Securities and Exchange Commission (SEC), clarifying its structure and custody.
As BeInCrypto reported, Bitwise’s trust hinges on the XRP token’s classification with the US SEC amid ongoing legal woes. This is as the US SEC continues to contend with its non-security status.
The outcome of the case, which could extend until July 2025, may directly influence whether an XRP ETF moves forward. Against this backdrop, Bitwise’s revised filing introduced measures to protect investors and ensure compliance with federal securities laws.
Despite ongoing uncertainty over XRP’s classification as a security, Ripple co-founder Chris Larsen donated $10 million in XRP to Kamala Harris’s campaign. This follows an earlier contribution of $1 million made in mid-October, marking his second significant donation to the campaign.
While the general perception is that Larsen believes Harris can support the crypto industry through the Democratic Party’s new approach, championing technology innovation and crypto-friendly policies, another version exits.
“There are plenty of different motivations to explain this donation. Thinking it over more, IMO the best explanation is simply: Screw it, let’s see if she accepts the XRP her own administration says is an investment contract. Remember, this is only 0.0323% of Chris Larsen’s net worth,” pro-XRP lawyer Fred Rispoli quipped.
Read more: How To Buy XRP and Everything You Need To Know.
It remains unclear what motivated Larsen’s decision. However, Brad Garlinghouse expressed respect for it and reaffirmed Ripple’s commitment to working with both Democrats and Republicans to promote crypto-friendly policies.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Credit: Source link
