The CEO of Ripple, Brad Garlinghouse, explores the role and importance of cryptographic ETFs

As market leader, Bitcoin opened the doors for SPOT cryptographic ETFs in early 2024 when 11 (at first, then 12) said products were finally green in the United States after years and years of delays and rejections.

Ethereum did the same in July and now the question is not yes, but what cryptocurrency will have its own bottom quoted in the United States, with some of the main contestants being XRP, Sol, Doge and LTC.

Trying to summarize the importance of cryptographic ETFs in just one minute, Ripple’s CEO, Brad Garlinghouse, described two key reasons why these financial vehicles are so important.

Institutional access

Before the January 2024 launch of the ETF Spot BTC on Wall Street, the participants of the institutional market had to trust more unusual access points (for them) to obtain exposure to Bitcoin, as exchanges of cryptocurrencies and self -constitute. However, the introduction of these financial vehicles changed the game completely for them, which is evident for the amazing demand for most Bitcoin Spot ETFs, especially the Blackrock Ibit.

“So, this was really the first time that institutions could go to Wall Street and trade directly in Crypto,” Garlinghouse explained.

Capital that previously could not enter the cryptocurrency space, such as endowment, pension funds or even mutual funds, now has a dozen options to do so.

Institutionalizing the industry

The second reason complements the first, Garlinghouse said, since it simply changes the focus in the cryptocurrency industry, at least for larger projects, mainly in larger investors and institutions.

As mentioned above, Blackrock’s ibit broke multiple records in terms of net entries for its year and a half in existence.

“It should not surprise that a Bitcoin ETF was the fastest ETF that has reached $ 1 billion in assets.”

It has become a giant since its total holdings are twice that the rest of the Bitcoin ETF combined. As of Friday, Blackrock’s ETC BTC had almost $ 48 billion in AUM, as it continues to dominate net tickets. Ibit has not seen a single day in red since the market crashes in early April. Consequently, Garlinghouse predicted that he will eventually approach the Golden ETFs as well.

In terms of an ETF Spot Ripple, something of the SEC of the SEC is expected since the agency continues to delay a decision on a couple of presentations. Polymarket shows that the possibilities that an ETF XRP will reach US markets this year exceed more than 80%, but the percentage falls to 21% when the deadline is established as of July 31.

However, Ripple saw some success in the front of the ETF, since some funds based on futures were launched to operate in the last month more or less.