Ripple CEO Brad Garlinghouse believes that the approval of a Bitcoin (BTC) Exchange-Traded Fund (ETF) could result in new capital flows towards the crypto market.
"With the approval of the ETF, we could see a significant flow of funds into the market," he said in a recent interview with CNBC.
However, this experienced crypto figure also expressed the difficulty in balancing this positive impact with other macro factors, such as conflicts in the Middle East and Europe.
“I go back to the basic principles around the big picture,” Garlinghouse added, noting that regulatory clarity and “a lot” of utility are needed for the crypto industry to thrive.
Garlinghouse Discusses Tokenization Potential.
On November 10, 2023 at 03:37 WIB, Ripple CEO Brad Garlinghouse believes that the approval of an Exchange-Traded Fund (ETF) for Bitcoin (BTC) could result in significant capital flows into the crypto market, as he expressed in an interview with CNBC.
However, Garlinghouse also acknowledged the challenges in balancing these positive impacts with macro factors, such as conflicts in the Middle East and Europe. He emphasized the need for regulatory clarity and utility diversity to support the growth of the crypto industry.
Garlinghouse also noted that the necessary solutions must be large-scale and not experimental or contingency.
Additionally, Ripple's CEO specifically talked about the potential for tokenization and increased adoption. Data from rwa.xyz shows a sharp increase in demand for tokenized Treasuries, reaching $750 million. Crypto companies and investment funds are showing interest in these products to take advantage of higher government bond interest rates, especially considering the negative impact of the recent market downturn on yields in the crypto lending sector.
Currently, the average yield for all tokenized Treasuries stands at 5.24%. Experts predict that the market capitalization of tokenized real-world assets could reach $10 trillion by the end of the decade. Asset management firm Bernstein estimates the tokenization opportunity to reach $5 trillion in the next five years, with currency and bank deposit penetration of 2%, resulting in a $2 trillion opportunity. They also project an additional $3 trillion in stablecoins and CBDCs.
Garlinghouse expressed high optimism regarding the future of cryptocurrencies in the next five to 10 years.
Bitcoin (BTC) prices surged due to positive sentiment regarding the outlook for Exchange-Traded Funds (ETFs).
Optimism surrounding the launch of a spot Bitcoin Exchange-Traded Fund (ETF) has been the driver of the latest rally in the crypto market, lifting the value of the leading cryptocurrency to as high as $38,000.
Analysts from Cantor Fitzgerald, a leading financial services firm known for its brokerage and investment banking services, believe that the long-awaited availability of a Bitcoin ETF is getting closer to reality. The company is increasingly confident about the possibility of approving applications from asset managers planning to launch spot ETFs for Bitcoin.
Although the Securities and Exchange Commission (SEC) was hesitant to approve a spot Bitcoin ETF due to concerns regarding potential manipulation on offshore spot platforms, Cantor Fitzgerald believes that the market surveillance procedures proposed by the new applicant can address those concerns, and they hope to influence SEC to grant approval.
The company's analysts, Josh Siegler and Will Carlson, highlighted the importance of forming "comprehensive oversight sharing agreements with regulated markets of significant size" in an effort to appease regulators.
Disclaimer : DYOR, NFA
