[NEWS] Ripple CEO says XRP physical ETF is inevitable

Brad Garlinghouse, CEO of Ripple, said in a Bloomberg video on the 24th that the birth of an XRP physical ETF is only natural, even though major banks such as Citibank have refused to trade on Ripple due to the ongoing SEC (Securities and Exchange Commission) lawsuit.

In a speech at Washington DC Fintech Week, Garlinghouse also said, "People in the cryptocurrency (virtual currency) industry are facing banking suspension issues." In his speech, he said, "I myself have experienced banking suspension."

As is well known, the SEC's lawsuit against Ripple has been ongoing for four years. It has also affected some cryptocurrency exchanges, and at one point, measures were taken to discontinue or stop handling XRP.

Garlinghouse named Citibank, saying that the bank recently decided to discontinue trading.

"They told me, 'Move your funds within five days.' They were very honest. They said, 'Look, you're a prominent figure in the crypto industry. Having a prominent figure in the crypto industry and banking in the crypto industry means that you're going to have more scrutiny from federal regulators,'" he said, recounting his conversation with the Citibank representative.

He then slammed the Joe Biden administration, adding that SEC Chairman Gary Gensler is leading a "reign of terror."

Meanwhile, Garlinghouse emphasized his optimism that "the industry is moving in a good direction" after Vice President Kamala Harris showed a positive attitude toward crypto assets.

In the midst of Ripple's legal battle with the SEC, Garlinghouse said, "I'm absolutely convinced that an XRP physical ETF is absolutely inevitable."

Increasing demand from institutional and retail investors

Garlinghouse cited the large inflows into already-traded Bitcoin spot ETFs, saying, "This clearly shows that there is demand from institutional and retail investors for access to this asset class."

In early October, Bitwise Asset Management Inc. filed an application with the SEC for an ETF tracking XRP.

Soon after, Canary Capital Group, a digital asset investment firm that was just founded in September, also filed to launch its own "Canary XRP ETF."

Garlinghouse added that the demand for crypto spot ETFs clearly indicates increased institutional participation in the market. "That will create upward pressure on the price of many different crypto assets, including XRP," he added.

Reference: Bloomberg
Image: Shutterstock

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