The push for an XRP exchange-traded fund (ETF) is gaining momentum as Bitwise Chief Investment Officer Matt Hougan confirms growing investor demand.
In a CNBC interview, Hougan was asked to comment on the demand for an XRP ETF. The host mentioned less demand for Ethereum ETFs than Bitcoin but noted that there is increasing adoption. “What does the outlook look like for an XRP fund,” the host asked.
In response, Hougan stressed that there is a massive demand for a regulated XRP investment product in the U.S. He backed up his view by citing two major factors.
First, Hougan highlighted that XRP has maintained a strong and dedicated community over the years. Moreover, he pointed out that the asset routinely garners significant trading volume on centralized exchanges.
For context, CoinMarketCap data shows XRP registered a $3.74 billion volume over the past day and $33 billion for the last seven days. The figures exceed $162 billion in the monthly timeframe.
Given this substantial market activity, Hougan remarked:
“I think people would love to find a way to hold XRP in a simple, low-cost, easy-to-use ETP structure.”
SEC is Open to XRP ETFs
The second major factor influencing optimism about an XRP ETF is the shifting regulatory position of the SEC.
Specifically, Hougan pointed out that the U.S. SEC has become more receptive to discussions around new crypto assets under the current administration. This contrasts with the more restrictive approach seen in previous years, particularly when discussing staking or in-kind issues.
He expressed optimism that the evolving regulatory landscape could lead to the approval of not only XRP ETFs but also other crypto-focused products, including Solana ETFs.
Notably, the SEC has acknowledged six XRP ETF filings, including from Bitwise, Grayscale, and WisdomTree. Grayscale’s XRP ETF has even progressed further, with the SEC entering it into the federal register. This move has opened up an eight-month decision timeline.
Index-based ETF Could Launch by End of 2025
Looking forward, Hougan mentioned his hopeful outlook for an index-based ETF, which he said would be the “killer app” in this space.
“A lot of people want to make a generalized bet on crypto, and I’m hopeful we’ll get that by the end of this year,” he said.
