In a most delightful twist of fate, the illustrious Bitcoin, that digital darling of the masses, has flung wide the gates to the realm of spot crypto ETFs in the early days of 2024. After what felt like an eternity of bureaucratic wrangling, 11—nay, 12—of these financial marvels were finally given the green light in the United States. One can only imagine the sighs of relief echoing through the hallowed halls of finance.
Not to be outdone, Ethereum decided to join the party in July, leaving us all to ponder not if, but rather which cryptocurrency will soon flaunt its own spot exchange-traded fund in the US. The usual suspects—XRP, SOL, DOGE, and LTC—are all vying for the spotlight, like eager contestants on a rather absurd game show.
In a valiant attempt to distill the essence of crypto ETFs into a mere minute, Ripple’s CEO, the ever-eloquent Brad Garlinghouse, laid out two pivotal reasons for their significance. Spoiler alert: it’s not just about the money.
Institutional Access
Before the grand unveiling of spot BTC ETFs on Wall Street in January 2024, our esteemed institutional market participants were forced to navigate the murky waters of cryptocurrency exchanges and self-custody—how quaint! But lo and behold, the arrival of these financial vehicles has transformed the landscape, as evidenced by the astonishing demand for most spot Bitcoin ETFs, particularly BlackRock’s IBIT, which has become the belle of the ball.
“So, this was really the first time you had institutions be able to go on Wall Street and trade directly in crypto,” Garlinghouse mused, likely with a twinkle in his eye.
Capital that once languished outside the cryptocurrency realm—think endowments, pension funds, and even the occasional mutual fund—now has a veritable buffet of options to indulge in.
Institutionalizing the Industry
The second reason, which complements the first like a fine wine to a sumptuous meal, shifts the focus of the cryptocurrency industry towards larger investors and institutions. It’s a bit like watching a high-stakes poker game where the stakes keep getting higher.
As previously mentioned, BlackRock’s IBIT has shattered records for net inflows during its brief existence, proving that it’s not just a flash in the pan.
“It should be no surprise that a Bitcoin ETF was the fastest ETF ever to get to $1 billion in assets,” Garlinghouse quipped, likely suppressing a chuckle.
With total holdings that dwarf the rest of the Bitcoin ETFs combined, BlackRock’s BTC ETF has amassed nearly $48 billion in assets under management, continuing its reign of dominance. Remarkably, IBIT has not seen a single day in the red since the market-wide meltdowns of early April. Garlinghouse, ever the optimist, predicts it may soon rival the gold ETFs as well.
As for a spot Ripple ETF, the SEC’s news is as predictable as a rainy day in London, with delays continuing to plague a couple of filings. Polymarket suggests that the chances of an XRP ETF gracing the US markets this year stand at a robust 80%, though that figure plummets to a mere 21% when the deadline is set for July 31. Ah, the joys of regulatory uncertainty!
Nevertheless, Ripple has managed to find some success on the ETF front, with a few futures-based funds making their grand debut in trading over the past month or so. One must applaud their tenacity in this ever-evolving circus of finance.
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2025-05-25 17:26