Bitwise CIO Says XRP Hasn’t Unleashed Its Full Potential Yet, Reveals Why Bitwise Filed for XRP ETF

Bitwise CIO Matt Hougan reveals the strategic thinking behind the company’s filing for a spot-based exchange-traded fund (ETF) for XRP.

Hougan made this known during an interview with Tony Edward, the host of the Thinking Crypto podcast. In the interview, Edward asked Hougan to comment on what prompted the company’s decision to apply for an XRP ETF before the U.S. election.

XRP’s Strength 

Responding, the Bitwise CIO first highlighted XRP’s strength, recognizing its strong community support and underlying technology, the XRP Ledger (XRPL). Despite XRP’s potential, Hougan still believes people have not yet seen the coin’s full capability due to the SEC v. Ripple lawsuit. 

He noted that the SEC lawsuit is limiting the potential of Ripple and XRP, describing it as “operating with two hands tied behind your back.” 

However, Hougan speculated that XRP could unleash its full potential in the market if there is a resolution of the industry’s regulatory issues. Highlighting XRP’s market appeal, Hougan asserted that the coin has quality and has attracted the interest of Wall Street companies. 

“I think it’s a really interesting idea [to consider] what can this asset do if it is unleashed,” he remarked. 

Reason Behind XRP ETF Filing 

Commenting on why Bitwise filed for an XRP ETF, he revealed that the company only files an ETF application with full conviction of its success. 

“Bitwise does not file for fun. We file because we think there is a pathway to launch a product,” he said.  

Interestingly, he suggested that Bitwise has a history of persistence, as seen in its Bitcoin ETF pursuit, which took five years before the SEC approved it earlier this year, alongside other applications. 

For the XRP ETF, Hougan stressed that Bitwise is optimistic about the product’s potential launch, particularly under the upcoming administration, which could usher in favorable regulations.  

It is worth mentioning that Bitwise was the first company to file for a spot-based ETF tied to XRP. The company submitted the filing last month despite growing speculations about a potential SEC appeal in the Ripple lawsuit. 

Following Bitwise’s XRP ETF filing, the SEC appealed the Ripple ruling the next day, drastically reducing the chances of approval. 

Nonetheless, NYSE Arca filed to convert the Bitwise 10 Crypto Index Fund (BITW), containing 10 crypto assets including XRP, into a spot ETF. Like XRP enthusiasts, Bitwise is confident that the U.S. crypto industry might welcome favorable regulations under the Donald Trump-led administration, potentially leading to the launch of XRP ETFs.