- Ripple CEO Brad Garlinghouse has referenced the approval of the Ethereum ETF to suggest that an XRP ETF is coming.
- The outcome of the Ripple v. SEC case will be key since the SEC is mandated to approve crypto ETFs making it unlikely they will approve an XRP ETF while the case is unresolved.
After the approval of the Ethereum spot ETF earlier this week, speculation on the next crypto ETF to be filed and possibly approved by the SEC has skyrocketed. One leading candidate is XRP, the native token developed by Ripple Labs for the XRP Ledger (XRPL).
After several delays, the U.S. Securities and Exchange Commission (SEC) finally approved applications from eight Ethereum spot ETFs, including BlackRock, Grayscale, VanEck, and Fidelity. This is the second approval after the launch of the Bitcoin spot ETF at the beginning of the year. These approvals signify a change in crypto stance as regulators begin to embrace the new industry.
With experts predicting that the approval of an ether ETF will open the floodgates for other crypto ETFs, the crypto community is speculating on the next approval. Leading candidates include Solana, Litecoin, and XRP. For Solana, its interest from institutional investors sets the stage for a quick filing and potential approval. Litecoin on the other hand enjoys key similarities with Bitcoin. As Litecoin founder Charlie Lee highlighted, the similarities in their proof-of-work mechanisms and classified Litecoin as a commodity like Bitcoin.
XRP is the only cryptocurrency that has its status protected by the law after Judge Torres ruled last year that XRP tokens were not securities. Although the legal brawl is still ongoing with an ultimate ruling expected in the coming months, legal experts expect a Ripple win. The legal clarity offered by this ruling could attract institutional investors both to invest and to offer XRP-related products such as an XRP ETF.
Ripple CEO Discusses XRP ETF
Ripple CEO Brad Garlinghouse seems to agree with leading experts that an XRP ETF could be next. After some influential XRP enthusiasts pointed out that an XRP ETF would follow the Ethereum ETF, Garlinghouse liked at least three of such posts on the X platform.
Big momentum in crypto this week – ETH ETF passed and bipartisan support on crypto legislation…
Feels like hell has frozen over!! 🥶 https://t.co/70T0qLt1FH
— Brad Garlinghouse (@bgarlinghouse) May 24, 2024
In an earlier interview, the CEO had claimed that an ETF would be unavoidable but failed to speculate on the timing of such a product. Sean McBride, Ripple’s ex-director, has suggested that an XRP ETF may surface by 2025.
Interestingly, a few months ago, there was speculation that BlackRock was working on an XRP ETF. As reported by CNF, BlackRock later refuted these claims.
Market experts continue to note that the ongoing Ripple v. SEC case could hinder the filing and approval of an ETF. But with the case approaching a conclusion, institutions could take an interest, driving demand and prices to new all-time highs.