Brad Garlinghouse, CEO of Ripple Labs, expressed optimism about the approval of spot XRP ETFs in the United States during an interview on Fox Business. He suggested that it is inevitable for a spot XRP ETF to be approved but cautioned that it might not happen until at least 2025.
The Ripple CEO's predictions for the XRP ETF
At the moment, only the spot Bitcoin ETFs are listed on US stock markets.
But those on Ethereum, which ought to list between the end of June and the start of July, have also already received approval.
As of right now, no more cryptocurrency spot ETFs are known to be awaiting approval; but, if the ones on TH were to be quite successful, it would seem likely that someone would choose to launch others on some other cryptocurrency.
Indeed, Solana (SOL) appears to be leading the race to follow Ethereum's path towards a spot ETF. However, the approval process for Bitcoin ETFs has faced challenges, which could pose hurdles for altcoins like SOL.
Nevertheless, the SEC's decision to approve spot Ethereum ETFs for the first time is a positive indicator for altcoins as well.
Apart from Solana, other altcoins could benefit from derivative products on traditional exchanges. However, some, like Binance Coin (BNB) and Telegram Open Network (TON), may encounter difficulties due to past legal issues with US authorities involving their respective companies, Binance and Telegram.
Dogecoin and Shiba Inu are unlikely candidates for spot ETFs on traditional exchanges. Additionally, Cardano's ADA and Avalanche's AVAX face challenges due to low trading volumes, making it unlikely for ETF creation and management.
XRP stands out as a potential contender despite having lower daily trading volumes compared to SOL. This is because it has been legally recognized as a commodity when traded on secondary markets, offering some advantages for potential ETF approval.
The remarks made by the CEO of Ripple
It is obvious that the CEO of Ripple, the business that developed and introduced XRP, is by no means an unbiased news source. Additionally, he has previously taken the lead in remarks that were later shown to be false, such as when he attacked Bitcoin and said that other cryptocurrencies would eventually overtake it as the most popular one in the world.
Nevertheless, his comments on the subject cannot be disregarded because he is undoubtedly highly knowledgeable about the current situation involving XRP.
According to Garlinghouse, XRP, SOL, and ADA are the top three altcoins for which spot ETFs could be offered on US exchanges, following Ethereum and Bitcoin.
Creating, launching, and managing an ETF for Cardano in the USA currently appears challenging. However, there's potential for both SOL and XRP, as suggested by Garlinghouse.
According to the Ripple CEO, XRP might have the edge, although some experts favor SOL. Nonetheless, the order of arrival matters less than the possibility of both being launched in the US next year.
Garlinghouse believes it's inevitable for an XRP spot ETF to be launched in the US, emphasizing the importance of expanding commodity options for investors.
In contrast to the US, other markets already have a variety of derivative products collateralized entirely in cryptocurrencies, including altcoins.
In Europe, 21Shares has been particularly active, issuing around thirty crypto spot ETPs. Their first crypto spot ETP was on Bitcoin, launched in February five years ago, followed shortly after by XRP in April of the same year. They've since issued ETPs on ETH, BNB, BCH, and XTZ, among others.
This lineup of around thirty crypto spot ETPs also includes offerings on SOL, TON, ADA, and AVAX. Notably absent are ETPs on DOGE and SHIB, which lack substantial crypto projects behind them.
Other third or fourth-tier altcoins like FTM, ALGO, MKR, and even newer ones like TIA are also represented in these offerings. And 21Shares isn't the sole company issuing multiple spot crypto ETPs on European exchanges, making the European market notably rich in this regard.
The Swiss SIX in Zurich likely hosts the most of these ETPs, but they are also available on European Euronext exchanges and the London Stock Exchange in the UK.
June 2024, Cryptoniteuae