Bitwise CIO Explains Why They Launched XRP ETF

The end of the SEC lawsuit allowed XRP to compete on a level playing field, prompting Bitwise to launch the ETF.

The ETF offers institutional investors a compliant, easy-to-understand way to gain exposure to XRP.

XRP’s ETF launch saw strong initial interest, with $25.7 million in trading volume on its first day.

Matt Hougan, Chief Investment Officer at Bitwise, recently explained why the company launched an XRP ETF. In an interview, he highlighted the timing of the launch and why it was crucial for investors. He emphasized that XRP had faced a long period of uncertainty due to the SEC’s lawsuit, which impacted its adoption.

According to Hougan, the lawsuit was a major hurdle for Ripple and XRP’s growth. He said that it had “frozen adoption” and made institutions wary of building real-world products on XRP’s network. With the lawsuit finally ending in August, Hougan sees a new opportunity for XRP to compete on a more level playing field.

The Timing of the XRP ETF Launch

In one and half a minute video through a post on X by Xaif, Hougan explained that Ripple’s strong community and the asset’s long history played a key role in the decision to launch the ETF. He referred to XRP as a “Lindy asset,” meaning it has been around for a long time and is expected to continue. He also stated that the end of the lawsuit opened a path for Ripple to build its ecosystem without the looming legal threat.

He admitted that the legal resolution does not secure a victory but rather allows for XRP to seek out new ventures. The litigation’s conclusion eliminates one of the major obstacles to the adoption of XRP. The change in regulation is a way for XRP to show its backers that their dreams for widespread applications are coming true.

Hougan’s remarks were confirmed by Xaif, a representative of Bitwise, who pointed out that the court case had blocked big-scale partnerships. They both mentioned the regulatory ambiguity as the primary cause for the absence of large-scale institutional adoption to date.

Bitwise’s Strategic ETF Launch

Bitwise’s decision to launch an XRP ETF was driven by the desire to offer regulated market exposure. The ETF provides a way for investors to gain access to XRP through a compliant and easy-to-understand structure. Hougan mentioned that Bitwise had reserved the ticker for XRP in advance and launched it as soon as the regulatory conditions allowed.

The ETF provides a direct path for institutions to invest in XRP, giving the cryptocurrency a stronger presence in the market. This move allows XRP to compete alongside other approved digital assets in the institutional investment space. By launching the ETF, Bitwise aims to provide “high-quality exposure” to XRP for the community. The launch of the ETF also highlights rising institutional interest in XRP

In its first day, the XRP ETF saw $25.7 million in trading volume and $107.6 million in assets under management. ETFs tend to attract traditional investors who require compliance-ready exposure, and the success of Bitwise’s ETF indicates a growing interest from these firms. With the end of the legal uncertainty, XRP now has more opportunities for institutional capital flow. If XRP can secure new partnerships and expand its enterprise use cases, it may strengthen its position in global finance.