Ripple CEO Expresses Surprise About XRP ETF Timing, Expects Product to Attract Capital Into XRP

Ripple CEO Brad Garlinghouse reacts to the filings of multiple XRP ETFs, speculating that the product would attract more capital into the XRP ecosystem. 

October 2024 started with a bang for the XRP community after Bitwise applied with the SEC to launch an exchange-traded fund (ETF) for the seventh-biggest cryptocurrency by market cap. 

On October 2, the crypto asset manager submitted an S-1 document with the SEC, declaring its interest in launching an XRP ETF. One week later, famous investment firm Canary Capital joined the race to launch a similar product for XRP. 

Garlinghouse Surprised By the Timing, Not the Outcome 

Speaking in a recent interview on the Thinking Crypto podcast, Ripple CEO Brad Garlinghouse said he was surprised by the timing of the XRP ETF filings. Both applications were filed within a week, at a time when the XRP community was deliberating whether the SEC would appeal the Ripple ruling. 

Although the SEC appealed the Ripple verdict just hours after Bitwise filed for an XRP ETF, it did not prevent Canary Capital from submitting its own XRP ETF application.

While Garlinghouse said he was surprised by the timing of the XRP ETF filings, the Ripple CEO said he was “not surprised by the outcome.” 

Garlinghouse suggested that his prediction about XRP ETF is gradually playing out. Recall that after the SEC approved multiple Bitcoin ETFs in January, Garlinghouse speculated that it is only a matter of time before the industry sees a similar product for XRP and other assets, like Ethereum (ETH). 

Currently, the SEC has approved Bitcoin and Ethereum ETFs, with two potential issuers seeking to launch a similar product for XRP. 

Grayscale Basket ETF Will Attract Capital to the XRP Ecosystem 

Additionally, Garlinghouse commended Grayscale’s move to file for the conversion of its Digital Large Cap Fund, containing five crypto assets including XRP and Bitcoin, to a spot-based ETF. 

According to him, this move validates his prediction that investors are seeking basket-style crypto investment options. Interestingly, Garlinghouse believes that Grayscale’s basket ETF will attract more capital to the XRP ecosystem and the broader crypto market. 

His confidence stems from the significant capital inflow into Bitcoin ETFs. For context, the multiple Bitcoin ETFs have attracted an inflow of $21 billion since they went live on January 10. Nonetheless, the Ripple CEO projected that these funds would attract more capital in the future.