Multiple crypto ETF approvals are “inevitable”, says Ripple CEO

22 Feb 2024

CEO of Ripple, Brad Garlinghouse, is confident the US Securities and Exchange Commission (SEC) will approve spot exchange-traded funds (ETFs) based on other crypto tokens, not just Bitcoin.

During an interview with Bloomberg this week, the Ripple CEO discussed the potential approval of spot ETFs based on XRP and other crypto tokens.

Speaking on the possibility of the SEC giving the green light to non-Bitcoin crypto ETFs, Garlinghouse said: “I think it only makes sense there will be other ETFs.”

Referring to parallels with the stock market, the Ripple CEO added: “You don’t really want exposure to one stock or one company. You want to typically think about diversifying risk.”

He went on to say: “So I think we will see other [crypto] ETFs. When we will see them is hard to predict.” He continued 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 Gensler’s hand,” that resulted in the SEC finally approving spot Bitcoin ETFs.

“In my opinion, it makes these markets safer, it makes them more robust, and so this is good for the investment community.”

Furthermore, when questioned if he would welcome an XRP ETF, Garlinghouse stated: “We would certainly welcome it and I think it’s inevitable that there’ll be multiple ETFs around different tokens. I think you’ll even see ETFs potentially around baskets.”

A number of companies have filed applications with the SEC to launch spot Ethereum ETFs, reports.

Indeed, last month, Standard Chartered said it forecasts the SEC to approve a spot ETH ETF in May. However, scepticism is rife as SEC Chair Gary Gensler has not stated his view as to whether Ether is a security.

The Chairman of the US regulator has said on numerous occasions that the majority of crypto tokens other than Bitcoin are securities.

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