Ripple CEO Brad Garlinghouse Explains Why Cryptocurrency ETFs Are Pivotal for Institutional Investors

The businessman's insights come amid the latest launch of the first XRP futures ETF on Nasdaq and ongoing regulatory delays from the U.S. Securities and Exchange Commission (SEC).

Ripple CEO Brad Garlinghouse has highlighted why cryptocurrency exchange-traded funds (ETFs) are pivotal for both Wall Street and institutional investors, especially as the first XRP futures ETF launches on Nasdaq.

The businessman’s insights come amid the latest development in the crypto ETF sphere, with the first such fund in the U.S. focused on XRP.

Earlier on Friday in Ripple’s “Crypto in One Minute” series, Garlinghouse explained two key reasons why crypto ETFs are a big deal.

First, he said that ETFs finally provide institutional investors such as pension funds, endowments, and mutual funds with a streamlined, regulated way to gain cryptocurrency exposure.

Previously, their options were limited to self-custody or trading on centralized exchanges, both of which have drawbacks and regulatory complexities.

“For the longest time, institutional investors really haven’t been able to access crypto directly. This is an unlock for capital that couldn’t come in before.”

He added that ETFs allow institutional players to trade crypto assets through familiar Wall Street mechanisms, thus bridging the traditional financial world and the emerging crypto ecosystem. This increased accessibility could bring substantial new capital inflows to digital assets.

Second, the pundit said that ETFs are “institutionalizing” the crypto market. He noted the remarkable success of Bitcoin ETFs, which set records as the fastest ETFs to reach $1 billion and subsequently $10 billion in assets under management.

“We’ll eventually close in on the gold ETF,” he added, highlighting the accelerating mainstream adoption of crypto investment vehicles.

Garlinghouse’s remarks come as significant developments unfold in the crypto ETF landscape. On May 19, 2025, CME Group launched XRP futures contracts, a pivotal moment for XRP’s institutional adoption. On its first day, the launch saw over $19 million in trading volume, exceeding expectations and highlighting strong institutional demand.

Following this, on Thursday, May 22, Volatility Shares launched the first-ever XRP futures ETF in the United States, which is now listed on Nasdaq with the ticker XRPI. This ETF primarily invests in XRP-linked futures contracts, providing institutional investors with an additional regulated pathway to access Ripple’s native token.

Analysts have noted strong potential demand, considering similar successes in the crypto ETF space. However, regulatory hurdles remain as the U.S. Securities and Exchange Commission (SEC) has delayed decisions on several other ETF applications.

Among these are Bitwise’s and CoinShares’ XRP ETFs, a Litecoin ETF, and Fidelity’s Bitcoin ETF proposal. These delays reflect the agency’s historically cautious stance toward approving crypto investment products.

Nevertheless, Bloomberg ETF analyst James Seyffart speculated this week that approvals could start rolling out as soon as late June or July if the SEC decides to ease its deferrals.