Despite years of legal confrontations with the US Securities and Exchange Commission (SEC), Ripple Labs CEO Brad Garlinghouse remains optimistic about the potential approval of a spot XRP ETF in the United States.
Garlinghouse’s confidence comes at a time when the cryptocurrency market is witnessing increased institutional interest, particularly following the successful launch of Bitcoin ETFs earlier this year.
Ripple CEO Confident In XRP ETF Potential Following Bitcoin ETF Success
In a recent interview with Bloomberg Television, Garlinghouse pointed out the significant inflow of capital into Bitcoin ETFs since their approval in January, which has seen approximately $17 billion invested, making it the fastest-growing ETF in history.
Garlinghouse emphasized that this surge illustrates a robust demand from both institutional and retail investors for access to digital assets. “It clearly demonstrates that there’s demand from institutions and retail to access this asset class,” he remarked.
The push for XRP ETFs gained traction earlier this month when Bitwise became the first firm to file with the SEC for an spot XRP ETF, the world’s seventh-largest cryptocurrency by market capitalization.
Following this, Canary Capital Group, a newly established digital asset-focused investment firm, also submitted its application for the Canary XRP ETF.
Increasing Demand For Crypto ETFs And Growing Institutional Interest
During the interview, Garlinghouse also commented on the SEC’s previous resistance to approving Bitcoin exchange-traded funds, stating that the US SEC was “dragged, kicking, and screaming” to approve the Bitcoin ETF market back in January of this year.
The increasing demand for cryptocurrency ETFs is part of a larger trend indicating more institutional participation in the crypto market, Garlinghouse noted.
Ripple’s CEO further believes that this institutional interest is likely to create upward pressure on prices for various cryptocurrencies, including XRP.
At the time of writing, XRP is trading at $0.5172, down nearly 3% in the past 24 hours.
Featured image from DALL-E, chart from TradingView.com