Brad Garlinghouse, CEO of Ripple, a payments platform, predicts a new wave of crypto investment products. He says it would make sense to create exchange-traded funds (ETFs) centered around XRP and other digital assets.
Diversification and Risk
Garlinghouse compares the early days of the stock market to the current state of crypto, emphasizing the need for diversification and risk management. He believes that investors will seek out ETFs to gain exposure to a wider range of crypto assets, reducing risk.
SEC Lawsuit Impact on XRP
Ripple’s long-standing legal battle with the SEC, which ended in a favorable ruling for Ripple last year, negatively impacted the value of XRP. The SEC had sued Ripple Labs in 2020 for allegedly selling XRP as an unregistered security. The court later ruled that XRP does not qualify as a security, falling outside the SEC’s jurisdiction.
XRP’s Utility and Real-World Applications
Garlinghouse highlights the utility and real-world problem-solving capabilities of digital assets like XRP. He emphasizes XRP’s speed, efficiency, and low transaction costs, making it ideal for payments. Ripple, as a company, has focused on leveraging these attributes in its services.
XRP’s Current Market Position
At the time of writing, XRP is trading at $0.54.
Disclaimer
Opinions expressed in this article are not investment advice. Investors should conduct thorough research before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets.
