XRP ETF Demand Surges: Investors Clamor for Regulated Access

Investor interest in an XRP exchange-traded fund (ETF) is surging, with a growing number of market participants expressing demand for a regulated investment product centered on the cryptocurrency. Matt Hougan, Chief Investment Officer at Bitwise, recently discussed this topic in an interview, highlighting the significant interest from investors in an XRP-focused fund.

During the interview, the host noted the substantial interest in Bitcoin ETFs and the relatively lower demand for Ethereum ETFs. However, the adoption of various digital assets continues to rise, prompting a question about the potential for an XRP-focused fund. In response, Hougan confirmed that interest in an XRP ETF is considerable, attributing this to two primary reasons. First, he highlighted the asset's strong and dedicated user base, which has remained active despite market fluctuations. Second, he pointed out that the token consistently generates high trading volumes on centralized exchanges, reflecting ongoing investor engagement.

Market data supports Hougan’s assertions. According to CoinMarketCap, the token recorded $3.74 billion in trading volume over the past 24 hours, with weekly trading volume exceeding $33 billion. On a monthly scale, trading activity surpassed $162 billion. These figures suggest that XRP remains one of the more actively traded cryptocurrencies, reinforcing the argument for a structured investment product.

Hougan emphasized that many investors seek a convenient and cost-effective way to gain exposure to XRP. A regulated ETF would provide such an opportunity, simplifying access for both retail and institutional investors.

Another factor contributing to optimism about an XRP ETF is the changing stance of the U.S. Securities and Exchange Commission (SEC). Hougan noted that under the current administration, the regulatory environment has become more open to discussions on new digital asset products. This shift marks a departure from the SEC’s historically restrictive approach, particularly regarding cryptocurrency staking and in-kind transactions.

Recent developments suggest that the SEC is actively considering multiple XRP ETF applications. The agency has acknowledged six proposals, including submissions from Bitwise, Grayscale, and WisdomTree. Notably, Grayscale’s filing has progressed further, as the SEC has entered it into the federal register, initiating an eight-month review period. This formal step indicates that the agency is taking the proposal seriously, increasing the likelihood of eventual approval.

Beyond XRP, Hougan believes the