The CEO of payments platform Ripple said it would “make sense” to create an exchange-traded fund (ETF) centered around XRP and other digital assets.
In a new interview with Bloomberg, Ripple Labs CEO Brad Garlinghouse predicts that we will see a new wave of crypto investment products in the future.
“I think it makes sense for other ETFs to exist. It's like the early days of the stock market. You don't really want to have exposure to one stock or one company. Usually you want to spread the risk and think about what you have. I'm sure you'll see more [crypto] ETF.
It's hard to predict when we'll see them. The sad reality we saw with Bitcoin ETFs is that [it happened] That's simply because the courts forced the SEC's hand, and in fact [SEC Chair] Gary Gensler's hands. ”
Garlinghouse said Ripple's years-long battle with the SEC culminated in a ruling in favor of the payments platform last year, which negatively impacted XRP's valuation. The SEC first filed charges against Ripple Labs in December 2020 for allegedly selling XRP as an unregistered security.
However, a court later ruled that XRP does not qualify as a security under the jurisdiction of the SEC.
Garlinghouse says.
“Prior to the SEC lawsuit, XRP was the second most valuable digital asset. Thanks to the headwinds of that litigation, we now see that situation largely weakening. But the long-term view on these is how these various digital assets can be used to create utility and solve real-world problems.
Bitcoin works extremely well as a store of value. XRP and its dynamics are very fast, very efficient, [and] Low cost per transaction [and that] This is perfect for payments, and that's where Ripple is focused as a company. ”
At the time of writing, XRP is trading at $0.54.
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