Brad Garlinghouse Highlights Growing XRP Demand Amid ETF

On Oct 8, 2024

Brad Galinghouse talked about the growing integration of XRP into traditional finance, stating it was only a matter of time before altcoin ETFs emerged.
Approval odds for the ETF remain low due to the SEC’s ongoing legal battle with Ripple and the lack of an established XRP futures market.

Ripple CEO Brad Garlinghouse has expressed optimism regarding the growing demand for XRP as Bitwise filed for an ETF. His comments come as the crypto market anticipates the launch of XRP ETF and other similar products following the success of Bitcoin and Ethereum ETFs.

XRP ETF Gains Momentum

On Wednesday, October 2, Bitwise Asset Management revealed in a press release that it had filed an initial registration statement on Form S-1 for a new Bitwise XRP Exchange Traded Product (ETP), reported CNF. This signifies surging institutional interest for Ripple’s XRP.

Hunter Horsley, the CEO of Bitwise, emphasized the firm’s commitment to facilitating access to blockchain-based assets. “At Bitwise, we believe blockchains will usher in new, apolitical monetary assets and permissionless applications for the 21st century,” Horsley said.

He added,

It’s why for the past seven years, we’ve helped investors access the opportunities in the space, and we’re excited to continue that work with our filing for a Bitwise XRP ETP.

This announcement follows Bitwise’s recent acquisition of ETC Group, a leading European firm specializing in crypto ETPs. Also, the asset manager launched its spot Bitcoin and Ethereum ETFs earlier this year. Thus, the momentum behind these developments is seen as a major milestone for altcoins like XRP and the upcoming ETP on it.

Ripple CEO Reacts To ETF News

Reacting to the news, Garlinghouse took to X to highlight the growing integration of XRP into traditional financial systems. He noted that Bitcoin and Ethereum ETFs have paved the way for similar products based on altcoins. “First BTC, then ETH… it was only a matter of time. This move underscores the growing trust & integration of digital assets like XRP into traditional finance,” Garlinghouse said. As reported by CNF, the central bank of Russia has selected XRP for cross-border payments.

He added, “I sense this is just the beginning.” The Ripple CEO’s comments reflect the emerging trend of institutional interest in crypto as a viable investment option. Moreover, analysts predict that an XRP ETF could significantly boost the Ripple token price, similar to a Bitcoin price surge following the approval of its ETFs.

Currently, XRP price is trading at $0.5291, a 1.08% drop over the past 24 hours. Despite a 15.85% slump over the last week, market analysts remain optimistic about its future prospects.

However, XRP’s one-hour technical chart shows a bearish retreat as selling pressure has risen. Despite this, analysts continue to be bullish on XRP, giving price targets of $10 and more, reported CNF.

Also, the approval odds of Bitwise’s XRP ETF are low since the SEC is engaged in a legal battle against Ripple. Thus, netizens expect that under current leadership, the American watchdog is unlikely to approve the product tied to XRP as they believe it’s a security. In addition, the actual approval process takes much longer due to several form submissions, amendments, and other procedures.

Furthermore, the launch of spot Bitcoin ETFs was based on the argument of BTC futures ETFs being already present. The SEC lost a lawsuit against Grayscale wherein the court determined that the agency shouldn’t discriminate between spot and futures markets. Conversely, the absence of a strong futures market for XRP, could further lower the approval chances.