ETFs
Ripple CEO believes XRP, SOL and ADA ETFs are inevitable after Ether approval
KEY POINTS
- Garlinghouse acknowledged that the approval process for new crypto products would be a long journey
- JPMorgan analysts are not optimistic about the initial market reaction to the spotted ETH ETFs.
- An expert previously predicted that the SEC would no longer approve new crypto ETFs.
The recent approval of 19b-4 filings from exchanges that want to trade and sell Ether (ETH) exchange-traded funds (ETFs) has many in the cryptocurrency community celebrating, including the CEO of payments protocol Ripple , who thinks it won’t. It will be a long time before the market sees ETFs of other popular digital assets.
“I think it’s just a matter of time, and it’s inevitable, there will be an XRP ETFthere will be a Solana ETF (SOL), there will be a Cardano ETF (ADA), and that’s awesome,” Brad Garlinghouse said at CoinDesk’s Consensus 2024 conference May 29-31 in Austin, TX.
XRP is the native cryptography of the XRP Ledger blockchain, while Ripple is behind the XRP Ledger and holds the largest number of XRP tokens.
Following the approval of ETH ETFs Late last month, Garlinghouse said he recognized that there would be a rigorous regulatory approval process before the XRP, SOL and ADA ETFs were approved. On the other hand, he believes that the challenges facing these cryptocurrencies will only be “speed bumps”.
His comments come as JPMorgan analysts predict that the crypto market’s initial reaction to the discovery of Ethereum ETFs will “likely” be negative and that demand for these products “would be a fraction of that observed for the Bitcoin spot“.
They said one of the main drawbacks of spot ETH ETFs is that the funds lacked the “first mover advantage” of Bitcoin, which could have generated more interest from digital asset investors .
JPMorgan Chief Executive Officer and Global Markets Strategist Nikolaos Panigirtzoglou also previously said he believes the U.S. Securities and Exchange Commission (SEC) is I finished endorsing crypto ETFsgiven that the regulatory agency has not yet clarified its view on Ether – whether the native token of the Ethereum blockchain is a security or a commodity.
It is also worth noting that Ripple is still in a legal dispute with the SEC. The regulator submitted a final filing to reiterate that the payments titan should face a penalty a heavy penalty to deter him “future violations”.
The regulator filed a lawsuit against Ripple last year, accusing it of violating securities laws. Garlinghouse said there was “no precedent” for the enormous amount of fines sought by the SEC in this case.
Meanwhile, the SEC has yet to make a decision on approving S-1 filings from spot Ether ETF issuers. ETF expert expects official fund launch to take place somewhere in early July after applicants have made final changes to their filings.