Yesterday the CEO of Ripple Labs, Brad Garlinghouse, made positive predictions regarding spot XRP ETFs.
Speaking at Fox Business Tuesday, he stated that he believes it is inevitable that a spot XRP ETF will eventually be approved in the USA, but he also said that it will be necessary to wait at least until 2025.
Summary
The ETF on XRP: the forecasts of the CEO of Ripple
Currently on the USA stock exchanges, only the spot Bitcoin ETFs are listed.
However, those on Ethereum have also already been approved, which should be listed between the end of June and the beginning of July.
At the current state, there is no news of other crypto spot ETFs in the process of approval, but if those on TH were to achieve good success, it seems inevitable that someone would decide to launch others on some altcoin.
To tell the truth, the cryptocurrency that seems to be in pole position to follow ETH on this path is SOL from Solana, but if the approval process for those on Bitcoin has already been troubled, it might not be a walk in the park to complete it for the altcoins.
The fact, however, that the SEC this time opted for a first-time approval of the spot Ethereum ETFs is a good sign for altcoins as well, in this sense.
Besides Solana, there are also other altcoins that could end up benefiting from this type of derivative products on traditional exchanges.
Some, however, like BNB or TON, might have a few more problems due to the legal issues they had in the past with the US authorities from the companies behind them, namely Binance and Telegram.
Dogecoin and Shiba Inu seem unlikely to have a spot ETF on traditional exchanges, and as for Cardano’s ADA, the trading volumes are definitely too low to think that anyone would bother to create and manage an ETF. A similar argument applies to Avalanche’s AVAX.
Remains XRP, which despite having daily trading volumes equal to about half of those of SOL, has at least the advantage of having been declared by a court a commodity in fact when traded on secondary markets, such as exchanges or stock exchanges.
So after SOL, in fact, XRP could be the main suspect to have a spot ETF on the US exchanges.
The statements of the CEO of Ripple
Obviously the CEO of Ripple, the company that created and launched XRP, is not at all an impartial source of news. Furthermore, in the past, he has already been the protagonist of statements that later turned out to be fallacious, such as when he lashed out against Bitcoin suggesting that the world’s main cryptocurrency could be surpassed by others.
Despite this, he is certainly very well informed about the state of things regarding XRP, so his statements on the matter cannot be ignored.
Garlinghouse argues that, after Ethereum and Bitcoin, the three main altcoins for which spot ETFs could be issued on US exchanges are XRP, SOL, and ADA.
If at this moment it actually seems a bit difficult for someone to want to take the trouble to create, launch, and manage an ETF on Cardano in the USA, as far as SOL and XRP are concerned, the possibility does seem to exist, as hypothesized by Garlinghouse.
According to the CEO of Ripple, among these three, the first could be XRP, although many other experts believe it could be SOL. However, it matters little which of the two arrives first, because if, for example, spot ETFs were to be launched on both SOL and XRP in the USA next year, the most important thing would be this, and not the possible precedence of one over the other.
Moreover, Garlinghouse stated that he believes it is inevitable that sooner or later someone will decide to launch an ETF on XRP spot on the US exchanges, also because he believes it makes sense to add as many commodities as possible to the market to offer investors more options for trading.
The crypto ETF in the rest of the world
This issue concerns only the USA, because in reality in other markets similar derivative products that are entirely and completely collateralized in criptovalute already exist even on altcoins.
In Europe, for example, 21Shares is very active and has already issued as many as thirty crypto spot ETPs.
Among other things, the first crypto spot ETP issued by 21Shares in Europe was on Bitcoin, in February five years ago, but just a few months later, in April, they issued the one on XRP. That same year they also issued those on ETH (Ethereum), BNB (Binance Coin), BCH (Bitcoin Cash), and XTZ (Tezos).
In this group of about thirty crypto spot ETPs, those on SOL (Solana), TON (Toncoin), ADA (Cardano), and AVAX (Avalanche) are also included. However, there are no ETPs on DOGE (Dogecoin) and SHIB (Shiba Inu), as these memecoins do not have a real crypto project behind them.
There are, however, also some third or fourth tier altcoins, such as FTM (Fantom), ALGO (Algorand), MKR (Maker), and even some very recent ones like TIA (Celestia).
Furthermore, 21Shares is not the only company to have issued several spot crypto ETPs on European exchanges, so from this point of view, it is precisely the European market that is the richest.
Probably the single stock exchange that hosts the most is the Swiss SIX in Zurich, but there are also several on the European Euronext exchanges and the British London Stock Exchange.
