Speaking at the Consensus 2024 conference, Ripple CEO Brad Garlinghouse declared that exchange-traded funds (ETFs) for cryptocurrencies beyond Bitcoin and Ethereum are “inevitable,” predicting the arrival of products for XRP, Solana (SOL), and Cardano (ADA). He described this development as a “great step forward” for the crypto industry.
The ETF Wave Is Unstoppable
“I think it’s just a matter of time. It’s inevitable there’s gonna be an XRP ETF, there’s gonna be a Solana ETF, there’s gonna be a Cardano ETF,” Garlinghouse said on stage. He acknowledged that the regulatory approval process would be rigorous but emphasized that the long-term trend is clear. The U.S. Securities and Exchange Commission (SEC) has already approved spot Bitcoin ETFs and, more recently, spot Ethereum ETFs, setting a precedent for other digital assets.
Regulatory Criticism and Uncertainty
Garlinghouse also took aim at the lack of regulatory clarity in Washington, D.C., specifically criticizing SEC Chair Gary Gensler for refusing to declare whether Ethereum is a security while asserting that the rules are clear. “Getting the regulatory posture right in the United States is just critical,” the Ripple CEO concluded. The ongoing legal battle between Ripple and the SEC over whether XRP is a security remains a central issue, and Garlinghouse argued that regulatory uncertainty is stifling innovation.
Market Implications and Outlook
If XRP, Solana, and Cardano ETFs are eventually approved, they would provide traditional investors with easy access to these cryptocurrencies, potentially driving significant capital inflows. However, analysts note that the SEC has previously labeled Solana and Cardano as securities in lawsuits, which could complicate their ETF applications more than XRP. Garlinghouse’s remarks reflect a broad industry expectation for ETF diversification, but the path to approval remains uncertain and dependent on regulatory evolution.