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- Bitwise Chief Investment Officer Matt Hougan believes that institutional appetite for an XRP ETF is growing, especially with a pro-crypto administration in office.
- This is evident in the multiple XRP ETF filings that the Securities and Exchange Commission has submitted and acknowledged.
Interest in an XRP exchange-traded fund (ETF) is rising, according to Bitwise Chief Investment Officer Matt Hougan. During a CNBC interview, Hougan emphasized the growing institutional demand for a regulated XRP investment vehicle in the U.S. His insights come as major asset firms, including Bitwise, Grayscale, and 21Shares, push for regulatory approval of XRP ETFs.
The CNBC host noted that while demand for Ethereum ETFs has been lower than Bitcoin’s, institutional adoption is increasing. When asked about the potential for an XRP ETF, Hougan pointed out two key factors driving demand.
Hougan emphasized XRP’s loyal investor community and strong market presence, noting its resilience even amid regulatory challenges. He believes this makes XRP a prime candidate for a regulated investment product, stating that investors would welcome a simple, low-cost, and easy-to-use ETP structure.
The second factor is the evolving regulatory landscape under Donald Trump, which could lead to the approval of XRP ETFs and other crypto-based investment products, such as Solana and Litecoin ETFs. Regulatory interest in an XRP ETF has gained traction recently, with the SEC officially acknowledging multiple filings, including Bitwise on February 18, Grayscale on February 13, and 21Shares.
Notably, Grayscale’s XRP ETF has advanced further, as the SEC has entered it into the federal register, triggering an eight-month review process. This development has fueled speculation on whether the SEC now considers XRP a commodity rather than a security, potentially signaling a major regulatory shift.
Institutional Crypto Adoption on the Rise
Hougan also discussed the broader institutional interest in cryptocurrency ETFs, noting that regulatory clarity and political factors are driving greater investment. He pointed out that institutional appetite for Bitcoin ETFs has surged in recent months, with institutional ownership climbing from 17% to 28% following regulatory approvals.
The global investment landscape is shifting, with Abu Dhabi’s Mubadala Investment Company now ranking as the 7th largest holder of BlackRock’s Bitcoin ETF, surpassing major U.S. banks such as PNC and BNY Mellon. Their holdings are valued at over $461 million. However, Goldman Sachs remains the largest institutional holder, with $710 million in Bitcoin ETFs, including investments in BlackRock’s IBIT and Fidelity’s Wise Origin Bitcoin Fund.
As CNF reported yesterday, Brazil’s Securities and Exchange Commission (CVM) has approved the world’s first spot XRP ETF, launched by asset manager Hashdex. This ETF is now available for trading on Brazil’s B3 stock exchange, offering investors direct exposure to XRP through the regulated financial product.
Despite the increasing institutional interest, XRP’s price performance has remained volatile. Over the past seven days, XRP has dropped 2.37%, currently trading at $2.66, which is 30% below its all-time high of $3.40. In the last 24 hours, XRP has fallen 1.06%, with trading volume declining by 28%. This indicates a mixed sentiment in the market, as investors weigh potential ETF approvals against short-term price fluctuations.
