XRP ETF Approval: SEC's Next Big Crypto Move

The potential approval of an XRP Exchange-Traded Fund (ETF) has garnered significant attention in the crypto community. Recently, the CBOE filed the 19b4S for Bitwise’s XRP ETF, alongside other companies seeking approval. Matt Hougan, Chief Investment Officer at Bitwise, shared insights into the current state of XRP ETFs in a recent discussion.

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have been several starts and stops with ETF applications in the past, with some applications being filed and later withdrawn.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.

The conversation around digital assets like XRP and Solana is heating up, and Hougan is optimistic that the SEC is increasingly willing to consider these ETFs. He believes that the outlook for XRP ETFs has improved over the past few months, and with more progress being made, it’s likely that the SEC will 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,” he said.

Hougan 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.