Chair

Grayscale Bitcoin Trust

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Ripple’s chief executive officer (CEO) Brad Garlinghouse is optimistic about the possibility of more regulatory approvals for crypto exchange-traded funds (ETFs) later this year. According to Garlinghouse, the approval of Bitcoin ETFs has paved the way for others.
Garlinghouse expressed his opinion in an interview at the World Economic Forum in Davos, Switzerland. Speaking to a CNBC correspondent, he seemed bullish that there might be more approvals in addition to Bitcoin, without specifying whether or not it would be from the <a href="https://cryptonews.com/news/new-cryptocurrency.htm" rel="noopener noreferrer nofollow">newest cryptocurrency</a> or an old favorite. However, he described an Ether (ETH) ETF as a certainty, specifying that “there will be other ETFs for sure.” The Ripple CEO also declined to suggest a timeframe.
<h2 id="span-style-font-weight-400-more-etf-approvals-this-year-span">More ETF Approvals This Year</h2>
Garlinghouse spoke on ETFs in general and the recent approval by the United States Securities and Exchange Commission (SEC). According to him, the only reason the SEC approved spot Bitcoin ETFs is because a court accused the Commission of partiality in its application of the law. Unfortunately, the CEO believes that while it would be unfortunate, it is possible that the SEC would have to be strong-armed by the court system again before approving another ETF.
The Ripple CEO also spoke further on ETFs, responding to several questions on the recent development. Garlinghouse chastised SEC Chair Gary Gensler for the Commission’s regulatory approach of enforcement action. He described Gensler as a “political liability in the United States,” adding that the Chair was not acting in the best interests of the citizenry or in the interest of long-term economic growth.&nbsp;
The SEC recently approved 11 spot BItcoin ETFs after more than a decade of repeated rejections. On the first day, the approved ETFs hit a trading volume of <a href="https://walletinvestor.com/magazine/spot-bitcoin-etf-hits-over-4-5-billion-in-trade-volume-on-first-day" rel="noopener noreferrer nofollow">over $4.5 billion</a>.&nbsp;
Several applicants have previously had their proposals denied because the SEC was unconvinced that the ETFs could adequately prevent fraud and market manipulation. Grayscale Investments eventually sued the SEC in June 2022, shortly after a rejection. Last August, the US Court of Appeals for the DC Circuit ruled in favor of Grayscale, stating that the SEC cannot adequately explain why it approved Bitcoin futures exchange-traded products (ETPs) but not that of Grayscale. The company was applying to convert the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund with more than $24 billion in assets under management (AUM), to an ETF.
<h2 id="span-style-font-weight-400-ripple-suspends-potential-ipo-until-sec-lawsuit-ends-span">Ripple Suspends Potential IPO Until SEC Lawsuit Ends</h2>
Interestingly, Ripple is also at loggerheads with the SEC. In 2020, the SEC sued Ripple, accusing the blockchain company of illegally raising over $1.3 billion in what the Commission describes as an unregistered securities offering. Last July, Judge Analisa Torres of the Southern District Court of New York eventually ruled that XRP is not a security. In what can only be described as a partial victory, Judge Torres ruled that while the private sale of XRP does not constitute a security, sales to institutional investors may be unlawful.
In 2022, <a href="https://www.cnbc.com/2022/05/25/ripple-will-explore-ipo-after-sec-lawsuit-ends-ceo-says.html" rel="noopener noreferrer nofollow">Garlinghouse said</a> that Ripple will consider an initial public offering (IPO) when the lawsuit with the SEC ends. However, the CEO no longer seems eager. Speaking at Davos, Garlinghouse said going public with a “very hostile regulator” would be difficult at the moment. He also added that while the company has considered IPOs outside the US, all plans for a public listing are on hold until further notice.

More Cryptocurrency ETF Approvals Expected in 2024 Says Ripple CEO

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