Ripple’s CEO, Brad Garlinghouse, recently shared insights on the potential development of an XRP exchange-traded fund (ETF) during a Bloomberg interview on February 20. Garlinghouse expressed openness to the idea, stating, “We would certainly welcome it,” though he did not elaborate on any specific plans for establishing such a fund. 

Despite probing, Garlinghouse remained discreet about ongoing discussions with asset managers, including BlackRock. He merely acknowledged the firm’s public comments without confirming any direct negotiations about launching an XRP ETF.

The conversation surfaced amidst speculations tied to a previously leaked and later debunked filing that suggested BlackRock was considering an XRP ETF. To date, the United States has not embraced an XRP ETF, contrasting the European market, where products like Coinshares and 21Shares’ XRP exchange-traded products (ETP) are available. Furthermore, a report last month by Fox Business Reporter Charles Gasparino indicated BlackRock’s apparent disinterest in supporting an XRP ETF.

Garlinghouse’s commentary extended beyond XRP, proposing the likelihood of diversified crypto ETFs as a natural progression in the maturation of the cryptocurrency market. He drew parallels to the early stock market days, advocating for a diversified approach to risk management in crypto investments. Moreover, he hinted at the future emergence of ETFs centered around various tokens, including potential baskets for further risk distribution, though he admitted the timing of such developments remains uncertain.

A significant part of the discussion also revolved around the recent regulatory advancements, notably the SEC’s approval of spot Bitcoin ETFs. Garlinghouse remarked on this approval as a “sad reality” prompted by legal pressure from the industry, particularly highlighting Grayscale’s successful lawsuit against the SEC, which contributed to the regulatory shift in January 2023. He praised the broader acceptance of crypto ETFs within the investment community for enhancing market safety and robustness.

Garlinghouse’s comments follow Ripple’s recent acquisition of Standard Custody & Trust Company, marking the company’s second significant move in the digital asset custody space after purchasing Swiss provider Metaco. Holding a New York BitLicense, Standard Custody expands Ripple’s regulatory credentials and service capabilities, reinforcing its ambition to serve enterprises engaging in the tokenization, storage, movement, and exchange of digital assets.