• Mon. Jun 24th, 2024

Ripple’s Garlinghouse Hints on XRP ETF Partnership With BlackRock

Maria Bartiromo

ByMaria Bartiromo

Feb 21, 2024
Ripple's Garlinghouse Hints on XRP ETF Partnership With BlackRock

The CEO of Ripple, Brad Garlinghouse, has alluded to the potential launch of an exchange-traded fund (ETF) based on XRP in association with BlackRock. The disclosure coincides with a rise in interest in cryptocurrency exchange-traded funds (ETFs), especially in the United States, where regulatory clearance for numerous digital assets has been difficult to obtain.

Investors and the XRP community alike are excited about Garlinghouse’s comments regarding BlackRock’s possible XRP ETF involvement. The report says that retail and institutional investors wishing to get exposure to the cryptocurrency market without directly holding the asset may use an exchange-traded fund (ETF) for XRP offers which are regulated.

This has been tagged the easily accessible investment instrument. As of press time, there hasn’t been a formal announcement about the XRP ETF; Garlinghouse’s remarks indicate that Ripple is looking into new ways to increase XRP’s use and accessibility. 

Ripple Says BlackRock May Have Stake in the XRP ETF 

The exchange-traded funds (ETFs), Exchange Traded Cryptocurrencies (ETCs) are becoming more popular outside the United States. Regulators have made it difficult for cryptocurrency ETFs to debut in the U.S., which has left investors yearning for alternate investing options.

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Garlinghouse’s reference to BlackRock’s possible stake in an XRP ETF raises the possibility that Ripple is actively looking into joint ventures with well-established banks to get the product into compliance with regulations and onto the market.

Tobi Loba, an industry analyst, has said that BlackRock may be able to secure clearance for an XRP ETF, judging from its experience in asset management and regulatory compliance. Tobi also explained that investors would find it simpler to deploy funds to XRP with the help of an ETF, which would encourage more market acceptance and liquidity.

Garlinghouse Claims Lawsuit Affecting XRP Progress

The CEO commented briefly on the ongoing Ripple court case with the Security and Exchange Commission (SEC). The lawsuit has caused a stir in the status of XRP’s regulation. Garlinghouse also said that the XRP had been ranked as the #3 top-performing cryptocurrency asset before the lawsuit was slammed.

He also accused the ongoing lawsuit of stifling the token’s growth. Garlinghouse expressed that he’s expecting to see many ETFs emerge on different digital tokens. He warned that an “ETF basket” can create more risky scenarios. The Ripple boss then added that it’s difficult to predict when such an arrangement will be made.

While speaking on the recent spot BTC ETF approval by the Securities and Exchange Commission (SEC), he tagged it a “sad reality,” referring to the scenario the commission had to approve the many applications after the many lawsuits.

Grayscale, one of the spot BTC ETF applicants, initiated and won the lawsuit against the SEC to challenge the decline of its applications in 2023. That development led to the company’s inclusion in January’s latest Spot BTC ETF approval. 

Garlinghouse Avoids Releasing More Information on XRP ETF Arrangement 

The report says that Garlinghouse, while speaking on Bloomberg, was a bit conservative in not validating any story of a solid partnership or plans. He clarified that he won’t be commenting on such a matter. He hinted at BlackRock’s CEO statement last month by saying that he’s aware that BlackRock has made some comments publicly (referring to the  XRP ETF).

The Ripple boss went ahead to show confidence in Ripple’s current position, hinting at the achievements it has attained so far and the future it is currently creating. He  revealed that the company’s long-term plan provides a real-time solution for world problems. 

Garlinghouse also spoke on the recently acquired Standard Custody & Trust, a U.S.-based digital assets service provider by Ripple, whose formal handover was done on February 13. Details of the acquisition say that the company is a certified custodian, which works according to the  United States federal laws and offers escrow and custody services under the New York State Department of Financial Services charter.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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