Bitwise CIO Believes XRP’s Future is Transformed by ETF Growth

Crypto investment firm Bitwise has made a significant move by going all-in on Ripple, with the Chief Investment Officer stating that the XRP “game has changed” following the surge of Exchange-Traded Funds (ETFs) towards $1 billion in assets under management in the aftermath of the SEC lawsuit.

Despite XRP trading at $2.02, reflecting a slight decline over the last 7 and 30 days, the market remains stable as new inflows support demand for the coin. Notably, U.S. spot XRP ETFs have witnessed 16 consecutive days of net inflows, propelling total assets close to the $1 billion mark. This positive trend stands out in the crypto market, especially considering that XRP is the only major token to have gained year-to-date during a challenging period for cryptocurrencies.

According to Bitwise CIO Matt Hougan, the firm had been cautious about developing an XRP ETF due to the uncertainty created by the SEC lawsuit. The legal battle cast a shadow over XRP, deterring institutions from adopting a digital asset that faced regulatory scrutiny. The lack of regulatory clarity hindered Ripple from securing partnerships and hindered its growth with investors and developers remaining cautious. However, following the conclusion of the lawsuit in August, Hougan believes that XRP now has a level playing field among other large-cap assets, paving the way for global use cases as Ripple’s community had envisioned.

The launch of Bitwise’s XRP ETF has been met with tremendous success, indicating a deep investor appetite for a compliant structure that provides exposure to XRP without the usual technical complexities. The initial trading volume and assets under management figures for the ETF demonstrate institutional interest and confidence in XRP’s potential within a regulated framework.

Hougan asserts that the post-lawsuit period has opened doors for XRP to compete globally in the realm of cross-border finance. With a battle-tested ledger and the demand for compliant financial products on the rise, institutions and retail traders are now entering the market with a more positive outlook, fostering liquidity and capital flow for XRP.

The steady performance of XRP amidst market fluctuations signifies a phase of accumulation, with Bitwise highlighting the asset’s resilience and new opportunities presented by the ETF era. As institutional flows increase, the narrative around XRP is shifting, signaling a new chapter in the asset’s journey within the global financial landscape.