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The CEO of payments platform Ripple says it would “make sense” if exchange-traded funds (ETF) were created around XRP and other digital assets.
In a new interview with Bloomberg, Ripple Labs CEO Brad Garlinghouse says predicts that a new wave of crypto investment products will emerge in the future.
“I think it makes sense that there will be other ETFs. It’s a bit like the early days of the stock market: you don’t really want exposure to one stock or one company, you generally want to think about diversifying risk and whatever. I think we’ll see more [crypto] ETFs.
It’s hard to predict when we’ll see them. The sad reality of what we saw with the Bitcoin ETF is [it happened] only because the courts have pressured the SEC, and really [SEC Chair] The hand of Gary Gensler.”
According to Garlinghouse, Ripple’s years-long battle with the SEC, which culminated in a favorable ruling for the payment platforms last year, has hurt XRP’s valuation. The SEC first sued Ripple Labs in December 2020 for allegedly selling XRP as an unregistered security.
However, a court later ruled that XRP does not qualify as a security that would fall under the jurisdiction of the SEC.
Says Garlinghouse,
“Before the SEC lawsuit, XRP was the second most valuable digital asset. Because of the headwinds from that lawsuit, we have now largely seen that decline. But the long-term view on these things is about how you create utility and solve real problems with these different digital assets.
Bitcoin does this very well as a store of value. XRP and its dynamics are about very fast, very efficient, [and] low costs per transaction [and that] makes it ideal for payments and that is what Ripple has focused on as a company.”
XRP is trading at $0.54 at the time of writing.
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