Martin Hiesboeck believes that we could soon see the arrival of applications for approval of ETFs for XRP, in a process of boosting this cryptocurrency that has begun to gain global relevance after its victory against the SEC.
Martin Hiesboeck, head of research at Uphold, has been in the spotlight of the XRP community after a striking post on X, in which he talks not only about the significant recovery of XRP, but because he hints at the possibility of us having an XRP ETF «just around the corner».
Hiesboeck who attributed XRP's positive momentum to the “further development of XRP since the lawsuit was settled,” makes clear reference to the fact that an ETF could come to the XRP ecosystem and further boost this cryptocurrency. This is even when Brad Garlinghouse himself, CEO of Ripple, has adopted a cautiously optimistic approach, acknowledging the regulatory challenges and uncertainty associated with the approval process.
Despite this, the potential launch of an XRP ETF has generated excitement in the crypto community as it is perceived as a significant step towards the legitimization and acceptance of XRP in the traditional financial sphere. The availability of an XRP ETF in the United States could attract a new segment of investors and contribute to the integration of cryptocurrencies into the conventional financial system.
What is an ETF and why is it important for institutional investors?
Let's remember that an ETF is a publicly traded investment fund that is designed to track the performance of an underlying asset, in this case, the XRP cryptocurrency. ETFs offer investors a simpler and more accessible way to diversify their portfolio, as they allow them to trade the underlying asset as if it were a stock, without the need to directly own the asset.
For institutional investors, the ability to access XRP through an ETF could represent a safer and more regulated option for investing in cryptocurrencies, potentially increasing their share of the XRP market.
Of course, launching an XRP ETF would face legal and regulatory challenges, especially in the context of strict oversight by the U.S. Securities and Exchange Commission (SEC). The uncertainty surrounding the regulatory status of XRP, which has faced litigation with the SEC, adds an additional layer of complexity to the possibility of an XRP ETF.
Ripple CEO's Perspective on XRP ETF
In all this, Ripple CEO Brad Garlinghouse has previously shared his views on the potential introduction of an XRP exchange-traded fund (ETF), expressing significant optimism about its prospects.
In a Recent interview on BloombergGarlinghouse admitted that he believes an XRP ETF would mark a natural progression in the diversification and advancement of cryptocurrency investment opportunities. He also drew parallels with the early days of the stock market and emphasized the importance of diversification in managing investment risk.
On the other hand, Garlinghouse expressed great enthusiasm for the concept of an XRP ETF, considering it a positive development in the cryptocurrency investment landscape. He highlighted the inevitability of cryptocurrency ETFs, underlining their potential to improve market security and robustness.
Criticism of the SEC's historic vacillation
Moreover, Garlinghouse did not hesitate to criticize the SEC's historical reluctance in this regard. He noted that the approval of a Bitcoin ETF came only after significant legal pressure and an embarrassing hacking event on his X account. But at the same time, Garlinghouse emphasized the positive impact of cryptocurrency ETFs on the security and robustness of the market. Words that are now clearly confirmed when the institutional investment market in cryptocurrency in the first two months of 2024 already exceeds the entire institutional investment market in 2021, with $10,3 billion in inflows.
Despite remaining tight-lipped about potential discussions with major issuers like BlackRock regarding an XRP ETF, Garlinghouse emphasized Ripple’s commitment to creating real-world utility for XRP, particularly in the payments space. He also expressed a favorable stance toward the introduction of an XRP ETF, envisioning a future where ETFs could encompass individual cryptocurrencies or a basket of assets, thus spreading investment risk more effectively.
At this point, the arrival of an XRP ETF would not be a strange situation to see, since Ethereum ETFs are on the way, with the SEC due to make a decision on them by May 23, a date that could mark a before and after for this crypto ecosystem.
Continue reading: Experts reduce the chances of approval for Ethereum ETF
