Blockchain startup Ripple CEO Brad Garlinghouse believes the cryptocurrency market is poised for significant growth this year.

In a recent interview with CNBC, Garlinghouse said that he expects the crypto industry's overall market cap to double by the end of the year, possibly reaching $5 trillion.

Ripple CEO Cites ETF Approval, Bitcoin Halving as Factors in Doubling Crypto Market Value

Brad Garlinghouse pointed to several key factors driving this anticipated growth. First, he mentioned the recent approval by the Securities and Exchange Commission (SEC) of the first US spot bitcoin exchange-traded funds (ETFs). 

These ETFs allow institutions and retail investors to gain exposure to bitcoin without directly owning the asset. Garlinghouse sees this development as a catalyst for attracting real institutional money into the market.

Garlinghouse also highlighted the upcoming bitcoin "halving" event, which is expected to take place later this month. The halving event, which occurs roughly every four years, halves the total mining reward for bitcoin miners. 

This reduction in supply, coupled with increasing demand, is expected to drive up the value of cryptocurrencies further. Garlinghouse emphasized the impact of these macro factors on the overall market dynamics.

"You're seeing that drives demand, and at the same time demand is increasing, supply is decreasing," he told CNBC. "That doesn't take an economics major to tell you what happens when supply contracts and demand expands."

READ NEXT: US SEC Approves Spot Bitcoin ETFs a Day After Its 'Hacked' X Account Prematurely Shared Such News

Bitcoin Hits Record Highs Amid Regulatory Optimism

As of April 4, the total crypto market capitalization stood at approximately $2.6 trillion. According to CNBC, if the Ripple CEO's prediction comes to fruition, with the market doubling in value, it would imply a new total market cap of $5.2 trillion by the end of 2024. 

On March 4, bitcoin soared to its highest level since 2021, hitting $64,000, following the US government's approval of the spot BTC ETF. On March 11, bitcoin reached another historic milestone by surging to a new record high, surpassing $71,000.

This remarkable increase came shortly after the announcement from the British financial authority permitting exchanges to market cryptocurrency-linked exchange-traded products (ETPs) for the first time.

The favorable regulatory momentum in the US is another factor contributing to the bullish sentiment in the crypto market. Garlinghouse and others believe more transparent regulations will further encourage investment and innovation within the industry.

READ MORE: Bitcoin Drops Below $40,000 for the First Time Since Bitcoin ETF Launch