The post Ripple CEO Brad Garlinghouse Explores the Role and Importance of Crypto ETFs appeared on BitcoinEthereumNews.com.

As the market leader, bitcoin opened the doors for spot crypto ETFs in early 2024 when 11 (at first, then 12) such products were finally greenlighted in the United States following years and years of delays and rejections. Ethereum followed suit in July and now the question is not if but which cryptocurrency will have its own spot exchange-traded fund in the US, with some of the leading contenders being XRP, SOL, DOGE, and LTC. Trying to summarize the importance of crypto ETFs in just one minute, Ripple’s CEO, Brad Garlinghouse, outlined two key reasons why these financial vehicles are so important. Institutional Access Before the January 2024 launch of spot BTC ETFs on Wall Street, institutional market participants had to rely on more unusual (for them) access points to get bitcoin exposure, such as cryptocurrency exchanges and self-custody. However, the introduction of these financial vehicles changed the game entirely for them, which is evident from the mindblowing demand for most spot Bitcoin ETFs, especially BlackRock’s IBIT. “So, this was really the first time you had institutions be able to go on Wall Street and trade directly in crypto,” Garlinghouse explained. Capital that previously couldn’t enter the cryptocurrency space, such as endowment, pension funds, or even mutual funds, now has a dozen options to do so. Institutionalizing the Industry The second reason complements the first, Garlinghouse noted, as it simply changes the focus in the cryptocurrency industry, at least for the bigger projects, mostly on larger investors and institutions. As mentioned above, BlackRock’s IBIT broke multiple records in terms of net inflows for its year and a half in existence. “It should be no surprise that a Bitcoin ETF was the fastest ETF ever to get to $1 billion in assets.” It has become a behemoth as its total holdings…

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Filed under: News - @ May 25, 2025 2:25 pm