Quick overview

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Matt Hougan, CIO at Bitwise, recently explained why the company just introduced an XRP ETF. He discussed the significance of the launch time in an interview.

His remarks come at a time when investors want clarity on XRP’s long-term trajectory, and the cryptocurrency wants to play a bigger part in global finance.

Hougan gave a straightforward explanation of Bitwise’s choice. He then addressed the main issue: during the SEC’s lawsuit, XRP faced an “existential regulatory threat.” He emphasized that no significant organization wanted to develop practical products on a network associated with such risk. This lawsuit, he argued, halted adoption. He made it clear that the obstacle was uncertainty, not technology.

Hougan claimed that this situation changed when the legal battle concluded in August. He stated that the blockchain now has “a chance” to compete on an even playing field.  It does, nonetheless, allow XRP to pursue the use cases that its advocates have long discussed.

Hougan highlighted the ETF structure as a crucial step. He mentioned that Bitwise had reserved the ticker XRP  and launched the product to provide the community with “high-quality exposure” through a simple ticker.

The company made this move as soon as the regulatory environment allowed it. This decision has given institutions a clear pathway to allocate capital.

Moreover, it has enhanced XRP’s standing in relation to other authorized digital asset funds. Investor interest in the Bitwise XRP ETF was strong upon its debut. On the first day, it recorded $25.7 million in trading volume and $107.6 million in assets under management.

Traditional businesses that require exposure that is ready for compliance are frequently drawn to ETFs. Institutions are interested in XRP, as evidenced by Bitwise’s ETF launch.

Long-term confidence is typically supported by greater regulatory clarity. Now that the lawsuit is over, access via an ETF deepens the market. Once excluded from institutional flow, XRP is now competing for it. XRP may become more prominent in international finance if new alliances and business applications emerge