- Ripple CEO Brad Garlinghouse has hinted at a possible XRP ETF saying they’ll certainly welcome it and that multiple ETFs along different asset classes are inevitable.
- Garlinghouse made this known yesterday in a Bloomberg interview where he discussed crypto regulation, Ripple’s compliance-first system, and other topics in between.
Ripple Is Open to An XRP ETF, Says Garlinghouse
In the Bloomberg Interview, Garlinghouse was first asked what he makes of the speculations about a potential XRP ETF in the future. He responded by likening the current spot ETF scene to the “earliest days of the stock market.” In essence, a monopoly of spot ETFs for a single asset class (Bitcoin) may not be in the best interest of investors. On the contrary, exposure to different ETF markets will help to spread out risks appropriately.
“It’s a little like, you know, the earliest days of the stock market. You don’t really want exposure to one stock or one company. You want to typically think about diversifying risk and what have you” he said.
Meanwhile, Garlinghouse chose to remain neutral on the time frame for a potential XRP ETF. He thinks “we will see other ETFs” but “when we will see them is hard to predict.” The uncertainty about the timeline for a possible XRP ETF may be ascribed to the tussles the spot BTC ETFs underwent with the SEC before breaking a decade-long spot hurdle.
Garlinghouse cited the “sad reality” of the BTC ETFs where the court had to force the SEC’s (and Chair Gensler’s) hand before it became a reality. He adds that the idea of an XRP ETF is “good for the investment community” and he kind of leans towards it.
“So, you would welcome an XRP ETF then?” asked the interviewer in a bid to get Garlinghouse’s unequivocal stance on Ripple’s XRP ETF plans. “We would certainly welcome it,” replied Garlinghouse adding that “it is inevitable” that there will be multiple ETFs around different tokens. He sees more ETFs as vehicles to diversify investment risks especially now that there’s heavy excitement around ETFs.
Garlinghouse Will Not Comment on BlackRock’s Involvement in XRP ETF Plans
Since last year, there have been heavy speculations of investment giant BlackRock’s partnership with Ripple to launch an XRP ETF. A fake XRP ETF filing, which BlackRock outrightly denied, manipulated the price of XRP last year, causing it to skedaddle to an impressive 13% before sending it crashing down. Since then, the XRP community has been keen on knowing Bkackrock’s involvement with a potential XRP ETF beyond the hoax.
“Are you in talks with the largest issuers, particularly BlackRock, to get this done?” asked the Bloomberg host.
“Well, I’m not going to comment on that,” answered Garlinghouse declining to give her a straight answer on the asset manager’s position. He only pointed out that BlackRock has said some things publicly and that Ripple is only one of the important players in the XRP ecosystem. He adds that Ripple’s focus is on providing long-term utility and solving real-world problems by providing fast, efficient, and low-cost transactions and that’s where the company has leaned into.
Just recently, Ripple acquired Standard Custody and Trust as part of its strategy to extend its tendrils into the US regulatory landscape and solidify its compliance reputation. The move will make it easier for Ripple to expand its product offerings with little or no regulatory hassles in the future. Standard Custody has a trust license in New York, making it a very valuable acquisition, reveals Garlinghouse
“Everything we have done at Ripple has compliant first…I think has to be a compliance first mindset for all of the crypto industry,” added Garlinghouse.