Ripple CEO Brad Garlinghouse made a bold prediction at the Consensus 2024 conference: exchange-traded funds (ETFs) for cryptocurrencies beyond Bitcoin and Ethereum are not a matter of if, but when. Following the U.S. Securities and Exchange Commission (SEC) approval of spot Bitcoin and Ethereum ETFs, Garlinghouse stated: “I think it’s just a matter of time, and it’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana (SOL) ETF, there’s gonna be a Cardano (ADA) ETF, and that’s great.”
Inevitable Wave of Crypto ETFs
Garlinghouse anticipates a rigorous regulatory approval process for these crypto ETFs but expressed confidence that they will ultimately be approved. The SEC's green light for 11 spot Bitcoin ETFs in January 2024 and for Ethereum ETFs in May 2024 has set a precedent that opens the door for other digital assets. Asset managers including Grayscale, WisdomTree, VanEck, and 21Shares have already filed or expressed interest in launching Solana and other altcoin ETFs.
Criticism of U.S. Regulatory Clarity
The Ripple CEO did not hold back in criticizing the lack of regulatory clarity in Washington. He specifically called out SEC Chair Gary Gensler for refusing to explicitly state whether Ethereum is a security while claiming the rules are clear. “Getting the regulatory posture right in the United States is just critical,” Garlinghouse concluded, emphasizing that clear regulations would foster innovation and protect investors. This criticism comes as Ripple itself has been locked in a long-running legal battle with the SEC over whether XRP is a security, with Ripple securing partial victories in court.
Market Impact and Outlook
The prediction sparked immediate market reactions. XRP, SOL, and ADA each saw price increases of over 3% within 24 hours of the statement. Analysts suggest that if XRP, Solana, and Cardano ETFs are approved, they would provide institutional investors with a compliant and easy way to gain exposure to these assets, accelerating mainstream adoption. The upcoming U.S. presidential election could also shift the regulatory landscape, potentially speeding up ETF approvals. As Garlinghouse noted, the question is not whether these ETFs will arrive, but when — and the industry is watching closely.