Beyond Bitcoin: Ripple CEO Says Approval of Multiple Crypto ETFs 'Inevitable' — Embraces Idea of Spot XRP ETF

Ripple CEO Brad Garlinghouse believes that the U.S. Securities and Exchange Commission (SEC) will approve spot exchange-traded funds (ETFs) based on crypto tokens other than bitcoin. “I think it‘s inevitable that there’ll be multiple ETFs around different tokens,” he stressed, noting that Ripple would welcome an XRP ETF. “In my opinion, it makes these markets safer, it makes them more robust, and so this is good for the investment community,” the executive emphasized.

Brad Garlinghouse on Potential XRP ETF Approval

Ripple CEO Brad Garlinghouse discussed the potential for the U.S. Securities and Exchange Commission (SEC) to approve spot exchange-traded funds (ETFs) based on XRP and other crypto tokens besides bitcoin in an interview with Bloomberg on Tuesday.

Commenting on the likelihood of the securities regulator approving non-bitcoin crypto ETFs, Garlinghouse said:

I think it only makes sense there will be other ETFs.

Drawing parallels to the stock market, the Ripple executive explained: “You dont really want exposure to one stock or one company. You want to typically think about diversifying risk.”

He opined: “So I think we will see other [crypto] ETFs. When we will see them is hard to predict.” He added that “the sad reality of what we saw with the bitcoin ETF is it‘s only because the courts forced the SEC’s hand, and really Chair Genslers hand,” that the SEC finally approved spot bitcoin ETFs. The executive emphasized: “In my opinion, it makes these markets safer, it makes them more robust, and so this is good for the investment community.”

When asked if he would welcome an XRP ETF, Garlinghouse replied:

We would certainly welcome it and I think it‘s inevitable that there’ll be multiple ETFs around different tokens. I think youll even see ETFs potentially around baskets.

Several companies have already filed with the SEC to launch spot ethereum ETFs. Standard Chartered said last month that it expects the securities regulator to approve a spot ethereum ETF in May. However, some are skeptical because SEC Chair Gary Gensler has not explicitly stated his view on whether ether (ETH) is a security. The SEC chairman has said multiple times that most crypto tokens other than bitcoin are securities.

Regarding the SEC‘s enforcement-centric approach to regulating the crypto industry, Garlinghouse said: “My point of view is the SEC has lost consistently.” Highlighting SEC’s losses in the Ripple and Grayscale cases, the Ripple chief noted that the presiding judge in the Coinbase case seems “pretty skeptical about some of the SECs arguments.”

Garlinghouse said he believes the SEC will stop its regulation by enforcement when the agency “either realizes they‘re losing consistently or you have Congress lean in and write new legislation.” However, the Ripple CEO noted: “That’s probably going to be hard in election year. Maybe we‘ll see legislation around stablecoins this year but I’m hopeful and well continue to advocate in Washington.”