Brad Garlinghouse, the CEO of Ripple, reviewed the growing importance of exchange-traded funds (ETFs) for cryptocurrencies, at a time when these financial instruments are starting to establish their presence in traditional markets.
Since the launch of instant Bitcoin funds in the United States at the beginning of 2024, the industry has entered a new phase of institutional maturity, followed by Ethereum funds, and questions are now being raised about upcoming cryptocurrencies, including XRP, SOL, DOGE, and LTC.
Institutional access and structural transformation:
Garlinghouse highlighted that instant index funds have finally allowed major financial institutions such as pension funds, endowments, and traditional investors to access cryptocurrencies through familiar and licensed channels.
Previously, these entities had to rely on cryptocurrency trading platforms or self-custody, which limited their direct involvement.
He noted that these financial instruments have been a turning point, as they opened the doors of Wall Street to a new class of digital assets, which was clearly manifested in the strong demand for BlackRock's IBIT fund, which led the investment flow scene and achieved unprecedented growth in asset size.
The second point that Garlinghouse focused on is that these funds are redirecting the industry towards adopting institutional standards, urging major projects to focus more on attracting institutional capital.
He pointed out that the IBIT fund has surpassed the one billion dollar mark in managed assets at the fastest pace in the history of index funds, and is now approaching the size of exchange-traded gold funds.
The fund's assets reached approximately 48 billion dollars by the end of last week, surpassing all other Bitcoin funds combined, without recording any net negative flows since the downturn in April, reflecting increasing confidence from institutions.
Regarding Ripple, the possibility of launching an instant XRP fund in the United States is still under review by the Securities and Exchange Commission (SEC), which continues to delay its decisions.
Forecasts from the Polymarket platform show that the chances of approving the XRP fund during 2025 exceed 80%, but drop to 21% for the upcoming July 31 deadline.
However, Ripple has made some progress in the area of investment products, as futures contracts based on XRP have recently been launched, reflecting an increasing market interest in linking Ripple assets to the traditional financial sector.
