The prospect of an XRP ETF is gaining momentum as investor interest mounts. Bitwise’s Chief Investment Officer recently addressed the topic, emphasizing significant investor demand for a regulated investment product centered on XRP.
Growing Demand
During a CNBC interview, it was noted that interest in Bitcoin ETFs is high, while Ethereum ETFs have seen less demand. However, the adoption of digital assets is rising, prompting discussions about an XRP-focused fund. According to CoinMarketCap, monthly trading volumes for XRP surpassed $162 billion, indicating significant investor activity and interest.
SEC’s Evolving Position on ETFs
Optimism around an XRP ETF is bolstered by shifting attitudes at the Securities and Exchange Commission (SEC) towards cryptocurrency ETFs. Recent developments indicate the SEC is considering multiple XRP ETF applications, with six proposals acknowledged, including from Bitwise, Grayscale, and WisdomTree. Grayscale’s bid has advanced, with the SEC entering it into the federal register, increasing chances of approval.
Potential for an Index-Based Crypto ETF
Hougan is optimistic about crypto-based ETFs' future, especially index funds tracking multiple digital assets. He foresees such a product launching by 2025, offering investors a broader way to engage with the market. An approved index-based ETF would mark progress in integrating cryptocurrencies into mainstream finance.
Overall, the growing demand for an XRP ETF, coupled with regulatory shifts and increased market activity, suggests a structured investment product could soon become a reality.
