In a Consensus 2024 interview, Ripple CEO Brad Garlinghouse argued that an XRP exchange-traded fund (ETF) is inevitable and that it is only a matter of time before many other cryptocurrency assets are approved for similar fund offerings.
Garlinghouse also expressed optimism that the cryptocurrency market is heading towards a $5 trillion valuation, with the recent approval of spot Bitcoin (BTC) and Ethereum (ETH) ETFs in the United States.
The Ripple CEO also reiterated his belief that there can be a variety of project initiatives and winners in the cryptocurrency space, each choosing to focus on a different aspect of the fast-growing decentralized finance and digital asset industries.
Related: Sorry XRP Army: Spot XRP ETF ‘Not Happening Anytime Soon’, Analysts Say
Blackrock’s Larry Fink questioned the viability of an XRP ETF.
In an interview with Fox Business in early 2024, Blackrock CEO Larry Fink was pressed about a potential XRP ETF from the world’s largest asset management firm.
When asked about the possibility of the $10 trillion asset manager bringing an XRP ETF to market, Fink said he could not discuss this.
Fink’s response, while far from conclusive, sparked speculation within the XRP community that Blackrock may be developing an XRP ETF.
Cryptocurrency ETFs: Why Are They Important?
Cryptocurrency ETFs are important because they allow investors, especially institutional investors, to gain exposure to cryptocurrencies and digital assets without having to hold them directly.
Digital assets are an innovative, yet relatively new and somewhat technical asset class. There is a learning curve when it comes to holding, trading, minting and trading digital assets, creating challenges for traditional investors.
Even something as simple as sending Bitcoin from one address to another can be a daunting task for those familiar with well-established stock exchanges, bond markets, and real estate trading.
Moreover, the lack of regularity clarity in the United States acts as a barrier for institutions and individuals to enter the nascent digital asset market.
The emergence of highly regulated ETFs helps alleviate both of these issues for anxious investors by providing a simple, regulated way to enjoy the benefits of digital assets without having to deal with the technical know-how of digital asset management.
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