In a recent interview with Bloomberg, Ripple CEO Brad Garlinghouse stated his belief that the U.S. Securities and Exchange Commission (SEC) will ultimately approve spot exchange-traded funds (ETFs) based on a variety of cryptocurrencies, not just Bitcoin. "I think it's inevitable that there'll be multiple ETFs around different tokens," he emphasized. Garlinghouse noted that Ripple would welcome an XRP ETF, adding that such products make markets safer and more robust for the investment community.
Garlinghouse on the Bitcoin ETF Precedent
Garlinghouse reflected on the journey of spot Bitcoin ETFs, arguing that their approval came only after court rulings forced the SEC's hand. "The sad reality of what we saw with the bitcoin ETF is it's only because the courts forced the SEC's hand, and really Chair Gensler's hand," he explained. He acknowledged that while the process was imperfect, the outcome — the launch of Bitcoin ETFs — proved that market demand for crypto-based investment vehicles exists. "In my opinion, it makes these markets safer, it makes them more robust, and so this is good for the investment community," he reiterated.
Outlook for XRP and Other Crypto ETFs
When asked directly about an XRP ETF, Garlinghouse replied: "We would certainly welcome it and I think it's inevitable that there'll be multiple ETFs around different tokens. I think you'll even see ETFs potentially around baskets." Drawing a parallel with traditional stock markets, he noted that investors typically diversify risk rather than concentrate exposure on a single stock. He believes the same logic should apply to crypto assets. While he could not predict a timeline, he expressed confidence that the SEC would gradually approve more altcoin-based ETFs.
Several asset managers have already filed for spot Ethereum ETFs. Standard Chartered predicted in January 2024 that the SEC would approve an Ethereum ETF by May. However, uncertainty persists as SEC Chair Gary Gensler has not explicitly classified Ether (ETH) as a commodity or security. Gensler has repeatedly stated that most crypto tokens — aside from Bitcoin — are securities, which creates a regulatory hurdle for altcoin ETFs.
SEC's Enforcement Approach and Future Regulation
Garlinghouse criticized the SEC's enforcement-centric approach to crypto regulation. "My point of view is the SEC has lost consistently," he said, citing SEC losses in the Ripple and Grayscale cases. He also noted that the presiding judge in the Coinbase case appeared "pretty skeptical about some of the SEC's arguments." Garlinghouse believes the SEC will abandon its regulation-by-enforcement strategy only when the agency "either realizes they're losing consistently or you have Congress lean in and write new legislation." He acknowledged that passing crypto legislation in an election year will be challenging, but he hopes to see stablecoin regulation in 2024, adding: "I'm hopeful and we'll continue to advocate in Washington."
Industry Reactions and Market Impact
The legal status of XRP remains a key factor. Ripple won a partial victory in its lawsuit against the SEC in 2023, but further debates over remediation and secondary sales continue. Garlinghouse's bullish comments could boost XRP investor sentiment, though regulatory risks persist. Analysts believe that if the SEC greenlights an Ethereum ETF, it could pave the way for other altcoin ETFs, but the timeline remains uncertain. The crypto industry is closely watching the SEC's next moves, especially amid ongoing political pressure for clearer digital asset rules.
Overall, Garlinghouse's statements underscore the industry's strong desire for diversified ETF products. As institutional interest in digital assets grows, multi-crypto ETFs could serve as a bridge between traditional finance and crypto markets. However, short-term caution is warranted given the SEC's potential policy reversals.