Ripple CEO Brad Garlinghouse, speaking at the World Economic Forum in Davos, Switzerland, expressed optimism about the future of cryptocurrency-based exchange-traded funds (ETFs) in the United States. This follows the recent approval of several Bitcoin ETFs.
In his conversation with CNBC’s Arjun Kharpal on January 16, Garlinghouse hinted at the likelihood of an Ether ETF being approved by the U.S. Securities and Exchange Commission (SEC). While he did not explicitly predict an XRP ETF approval, his expectations for an Ether ETF were clear. “I think it’s a certainty,” he stated, though he refrained from specifying a timeline.
Garlinghouse criticized SEC Chair Gary Gensler’s approach to cryptocurrency regulation. He used a well-known expression to describe what he sees as the futility of the SEC’s current methods: “The definition of insanity is doing the same thing over and over again and expecting a different outcome.” He accused Gensler of acting against the interests of the public and the long-term growth of the U.S. economy.
The Ripple CEO also pointed out that the SEC’s approval of a Bitcoin ETF came under pressure from the U.S. justice system, which accused the SEC of being “arbitrary and capricious” in applying the law. Garlinghouse expressed concern that other ETFs might have to undergo similar legal challenges to gain approval.
Garlinghouse’s comments came in the wake of significant trading activity in Bitcoin ETFs. On January 16, Bitcoin ETFs saw a total trading volume of $1.8 billion, with major contributions from Grayscale, BlackRock, and Fidelity. This was in stark contrast to the $450 million trading volume of all 500 ETFs launched in the U.S. in 2023 on the same day, as noted by Bloomberg ETF analyst Eric Balchunas.
Brad Garlinghouse’s remarks at Davos reflect a growing sentiment in the cryptocurrency industry about the potential expansion of crypto-based ETFs in the U.S. market. His critique of the SEC’s regulatory stance and the anticipation of future ETF approvals, including potentially for Ether, highlight the evolving landscape of cryptocurrency investment products.
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