Ripple CEO Brad Garlinghouse’s optimistic forecasts have sparked conversations about future ETFs for XRP and other altcoins. At the Consensus conference on May 30, Garlinghouse suggested that approving an XRP ETF in the U.S. is “inevitable” following the recent regulatory advancements with Ethereum ETFs. He said, “It’s only a matter of time until we see ETFs for XRP, Solana, and Cardano. It’s inevitable, and that’s great.”
Recent SEC Approvals Stir Market Expectations
The U.S. Securities and Exchange Commission (SEC) recently approved spot Ethereum ETFs, which surged Ethereum’s price to its highest level since mid-March. This regulatory change follows the successful introduction of Bitcoin ETFs in January. For instance, BlackRock’s iShares Bitcoin Trust (IBIT) has successfully gathered $20 billion in total assets under management.
While the deployment of Bitcoin ETFs was successful in the market, and several Ethereum products were approved, Ethereum ETF trading has yet to be approved. The SEC has accelerated the process by requesting potential issuers to submit draft S-1 registration statements. These developments have paved the way for optimism that XRP and other altcoins like Solana could soon see their ETFs in the U.S. market. Also, during the Consensus, ARK Invest CEO Cathie Wood mentioned that the approval of ether ETFs is due to crypto becoming a key election topic.
Challenges and Outlook for Altcoin ETFs
While the SEC’s openness to Ethereum ETFs has been seen as a green light for other altcoins, the demand for such products remains uncertain. Robert Mitchnick, head of digital assets at BlackRock, noted that there has been “very little” interest from clients in altcoins, suggesting that the market for these newer ETFs might be less robust than expected.
The push for altcoin ETFs comes amid broader advocacy from pro-crypto lawmakers who urge the SEC to expand its ETF approvals to include other tokens. Industry observers suggest the current regulatory Softening could be a window for potential issuers to introduce altcoin ETFs.
However, not all industry experts are convinced that approvals for new altcoin ETFs will come swiftly. Analysts from multinational bank Standard Chartered, including Geoffrey Kendric, predict that such approvals, particularly for XRP and Solana, are more likely by 2025 rather than 2024.
🏛 Standard Chartered analyst Geoffrey Kendrick predicts cryptos ETFs like $SOL and $XRP could be approved by 2025.
Approval of the $ETH ETF suggests $ETH and other similar cryptos will not be treated as securities. pic.twitter.com/ye7lsBK2un
— Ajay Kashyap (@EverythingAjay) May 25, 2024
The analysts argue that while interest and anticipation for these ETFs are growing, the current regulatory environment and market conditions could delay immediate approval.
Also Read: XRP’s Next Chapter in the US: Ripple Expands Payment Services
Garlinghouse’s Vision for Cryptocurrency Innovation
Garlinghouse is confident that an XRP ETF will launch, reflecting his vision for U.S. cryptocurrency innovation. He likens the growing crypto market to the early stock market. Emphasizing the importance of diversification to manage risk. Ripple’s support for an XRP ETF underscores this philosophy, as Garlinghouse believes that having multiple ETFs across different tokens will benefit the market.
Despite ongoing challenges and uncertainties, his comments indicate a growing acceptance of digital assets within the regulatory landscape. As cryptocurrency regulations evolve, the industry will closely monitor how these predictions play out in the future.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
