Ripple CEO Brad Garlinghouse has expressed his validation of the United States Securities and Exchange Commission’s decision to authorize financial institutions to offer investors spot Bitcoin exchange-traded fund (ETF) products.
In a recent interview with FOX Business, the Ripple boss noted that the approval from the financial regulator is a step closer to bringing cryptocurrencies like Bitcoin into the mainstream.
Ripple CEO: Spot Bitcoin ETF Approval is a Very Big Deal
A spot Bitcoin ETF is an investment vehicle that allows financial companies to offer a BTC-backed asset to retail and institutional investors. The mechanism of the product mandates that the issuing companies purchase actual BTC, thereby boosting the asset’s demand. On the other hand, investors can invest in Bitcoin the same way they trade stocks and similar products in traditional financial markets without directly holding the cryptocurrency.
In the interview, Garlinghouse emphasized that the newly approved product will enable more institutions to invest in the crypto industry. In his words, the spot Bitcoin ETF approval “is a very big deal.”
The Ripple chief also explained his company’s role in the new movement. He noted that Ripple’s mission as a global payment solution aligns with Bitcoin’s narrative as an electronic payment system and other financial institutions’ efforts to invest in the asset class.
Notably, the driving force behind Garlinghouse’s enthusiasm is not far-fetched. Three days after the SEC approved the first batch of ETF products, trading volumes among financial institutions offering the investment vehicle soared to about $10 billion. This record shows how much interest investors have in the Bitcoin-focused product.
Garlinghouse Classifies SEC Chair as Political Liability
After applauding the new decision from the SEC, the Ripple CEO hauled the view of Gary Gensler, the SEC Chairman, about the industry.
“Gary Gensler has prioritized hiring more lawyers to litigate the industry. This is often described as a ‘regulation through enforcement.’ If we just took the time to [outline] rules of the [crypto industry], most of the industry in crypto wants to follow the rules,” he said.
According to Garlinghouse, Gensler should give a clearer regulatory stance instead of attacking the crypto industry.