Ripple CEO Brad Garlinghouse made a bold forecast at the Consensus 2024 event, asserting that exchange-traded funds (ETFs) for cryptocurrencies beyond bitcoin and ether are a matter of time. “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,” he stated.
ETF Wave Expands to Major Altcoins
Garlinghouse highlighted that the SEC’s approval of spot bitcoin and ethereum ETFs signals a turning point in regulatory attitudes. As the market’s acceptance of digital asset investment vehicles grows, more ETFs based on mainstream cryptocurrencies will enter the review pipeline. He emphasized that while the approval process may face rigorous scrutiny, the long-term trend is irreversible.
The Ripple CEO noted that XRP, SOL, and ADA have developed sufficient market depth and community support to qualify as underlying assets for ETF products. However, he acknowledged that the SEC’s classification of each asset — particularly whether it is deemed a security — will be a critical variable.
Regulatory Clarity Remains the Biggest Hurdle
Garlinghouse criticized the U.S. regulatory environment, specifically calling out SEC Chair Gary Gensler. “There’s a lack of regulatory clarity in Washington,” Garlinghouse said. “Gensler insists the rules are clear, yet he refuses to clarify whether ether is a security. This ambiguity leaves the entire industry in limbo.” He urged the United States to establish a clear digital asset regulatory framework to attract innovation and capital inflows.
Garlinghouse’s comments come at a critical juncture in Ripple’s ongoing legal battle with the SEC. In July 2023, a U.S. judge ruled that Ripple’s programmatic sales of XRP to retail investors on exchanges did not constitute securities offerings, though institutional sales remain contested. This partial legal clarity has fueled market expectations for an XRP ETF.
Market Outlook and Realities
Despite Garlinghouse’s optimism, industry observers caution that the SEC has not yet determined whether SOL and ADA are securities, making near-term ETF approvals unlikely. Bitcoin and Ethereum ETF applications took years to gain approval; altcoin ETFs could take even longer. Nevertheless, as multiple countries push forward with crypto regulatory legislation, ETFs are increasingly seen as a bridge between traditional finance and the crypto ecosystem.
At present, several asset managers have submitted ETF applications for Bitcoin and Ethereum, while filings for XRP, SOL, and ADA remain in early discussion stages. Garlinghouse’s remarks have undoubtedly injected a dose of optimism into the respective communities, though the road to approval remains fraught with regulatory hurdles.