XRP ETF Approval Buzz: SEC's Open Mind, Bitwise's Optimism

The potential approval of an XRP Exchange-Traded Fund (ETF) has generated significant interest in the crypto community. Recently, the CBOE filed the 19b for Bitwise’s XRP ETF, along with other companies seeking approval. Matt Hougan, Chief Investment Officer at Bitwise, discussed the prospects for these ETFs in a recent interview, providing insights into the current state of XRP ETFs.

In the interview, Hougan acknowledged that there have been several starts and stops with ETF applications in the past, with some applications being filed and later withdrawn. However, the fact that multiple issuers are now refiling their applications suggests that the U.S. Securities and Exchange Commission (SEC) is open to investigating these products, although approval is not guaranteed.

Hougan expressed optimism about the SEC's willingness to consider digital assets like XRP and Solana for ETFs. He noted that the conversation around these assets has been heating up, and with more progress being made, the SEC is likely to take a more accommodative approach to approving these assets.

“I would say you want to be realistic about the speed. I think even a pro-crypto SEC is likely to take their time, analyze, get public comment. My view is that this is a long game. Our view is that the SEC wants to take an accommodative view and help investors access these assets through ETPs. We’ll find out over the next six months,” Hougan said.

Hougan also pointed out that, historically, commodity ETFs have been launched only when there is a regulated futures market for that commodity, such as with gold and even Bitcoin. While a futures market is not required for XRP ETFs, it would be an important factor in the approval process.