Ripple CEO Brad Garlinghouse, speaking at the World Economic Forum in Davos, expressed optimism about the future of cryptocurrency investment products in the U.S., particularly the potential approval of Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). He refrained from making explicit predictions about an XRP ETF but anticipates a positive outcome for an Ethereum ETF application.
Garlinghouse criticized SEC Chairman Gary Gensler’s approach to regulation, suggesting that it does not align with public interest or contribute to long-term economic growth. He highlighted the irony of expecting different outcomes from repeating the same regulatory actions.
The Ripple CEO also mentioned the increasing pressure the SEC faces from the U.S. justice system regarding its regulatory stance on the cryptocurrency sector. He pointed out that only due to a U.S. court’s criticism of the SEC’s arbitrary application of the law do we have a Bitcoin ETF.
On January 16, Bitcoin ETFs achieved a trading volume of $1.8 billion, with major players like Grayscale, BlackRock, and Fidelity accounting for $1.6 billion of that volume. This significant activity contrasted with the $450 million trading volume across all 500 ETFs launched in the U.S. in 2023, as noted by Bloomberg ETF analyst Eric Balchunas.
Garlinghouse’s comments reflect a broader anticipation of growth in the cryptocurrency investment product market, despite current regulatory hurdles and the need for a more supportive regulatory framework to foster innovation and economic expansion.
