Ripple CEO Foresees Surge in Cryptocurrency ETFs Following Bitcoin Fund Approvals
Summary:
Ripple's CEO, Brad Garlinghouse, anticipates the approval of several Bitcoin ETFs in the U.S. will initiate similar cryptocurrency investment launches in 2024. While not directly ensuring an XRP ETF's approval, Garlinghouse expects Ethereum ETF to receive a favorable verdict soon. He also criticized the SEC chairman, Gary Gensler, for his regulatory strategy and mentioned the SEC's judicial pressure regarding its approach to cryptocurrency. He mentioned the surprising success of the stablecoin market and hopes for regulatory clarity to benefit the industry.
Ripple's CEO, Brad Garlinghouse, anticipates that the authorization of numerous Bitcoin exchange-traded funds (ETFs) within the United States will lay the groundwork for the introduction of alike cryptocurrency investment products in 2024. During the interview with CNBC's Arjun Kharpal in Davos on 16th January, Garlinghouse did not directly predict the approval of an XRP ETF by the U.S. Securities and Exchange Commission (SEC) but does anticipate a favorable verdict for an Ethereum ETF soon.
"I confidently believe it will happen. I wouldn't put a timeline on it, but I'm certain other ETFs will be on the horizon," Garlinghouse said in a CNBC interview at Filecoin Sanctuary, on the periphery of the World Economic Forum site in the Swiss municipality.
The Ripple leader was answering queries centred around the SEC's notable endorsement of Bitcoin ETFs, despite no formal support for Bitcoin from the regulator's chief, Gary Gensler.
Garlinghouse rebuked Gensler's regulatory strategy, using a famous saying suggesting that " Insanity is often characterized as repeating the same actions repeatedly while anticipating differing results."
"In my opinion, the SEC's chairman, Gary Gensler, has evolved into a political obstruction within the United States. He's not serving in the country's best interests or promoting long-term economic growth," Garlinghouse said.
Additionally, he acknowledged the SEC is grappling with mounting scrutiny from the American judicial system concerning its administrative strategy towards cryptocurrency.
“The existence of a Bitcoin ETF is purely due to a U.S court instructing the SEC that their application of the law was arbitrary and capricious. It would be a shame if every ETF had to undergo the same process and for Gary Gensler to be chastised by U.S. courts again, but that may be necessary," Garlinghouse elucidated.
Garlinghouse is optimistic that the approval of several Bitcoin exchange-traded funds (ETFs) in the United States will set the stage for the introduction of analogous cryptocurrency investment products in 2024.
"The stablecoin market has in some ways amazed people by addressing a real need. It's only logical for there to be regulatory clarity in this regard, which I believe will benefit the entire industry," said Garlinghouse.
On January 16, Bloomberg ETF analyst Eric Balchunas noted a stark distinction between the $450 million trading volume of all 500 ETFs launched within the United States in 2023 on the same day and the $1.8 billion in total trading volume by Bitcoin ETF, as reported by Cointelegraph, with Grayscale, BlackRock, and Fidelity accounting for $1.6 billion in isolation.
Published At
1/17/2024 2:14:18 PM
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