In an interview, Brad Garlinghouse, CEO of Ripple, discussed the impact of exchange-traded funds (ETFs) on the cryptocurrency market and the growing interest in XRP.
Impact of Bitcoin ETF on the Market
Garlinghouse emphasized that the successful performance of the Bitcoin ETF has set a significant precedent in the market. He noted that about $17 billion has flowed into the Bitcoin ETF since its approval, making it the fastest-growing ETF in history. This influx indicates both institutional and retail demand for digital assets within regulated investment vehicles.
Inevitability of XRP ETFs
Garlinghouse highlighted that interest in XRP is rising, with filings for XRP-based ETFs. He described the creation of such a product as inevitable, correlating it with the broader trend of increasing institutional engagement in the cryptocurrency industry. He mentioned efforts to establish a basket ETF encompassing several cryptocurrencies, including XRP, to provide diversified exposure for investors.
Comparing ETF Performance
The interviewer raised a question about genuine demand for an XRP ETF, given that inflows into Ethereum ETFs have been more modest than those into Bitcoin. Garlinghouse pushed back against this assertion, noting that while Ethereum ETFs had not matched Bitcoin in size, they had nonetheless performed exceptionally well relative to Ethereum's overall market position.
Overall, Garlinghouse's discussion emphasizes the importance of ETFs as tools to enhance participation from both institutional and retail investors in the cryptocurrency market. The success of ETFs could positively impact XRP's price and deepen market liquidity.
