Bitwise CIO Matt Hougan recently revealed why the company recently launched an XRP ETF. In an interview, he explained why the timing of the launch mattered. His comments arrive at a point when XRP seeks a larger role in global finance, and investors want clarity on its long-term path.
A Positive Change in Conditions
Hougan described a simple reason for Bitwise’s decision. He said Ripple has a strong community. He also referred to XRP as a Lindy asset that has been in existence for a long time. He then addressed the central issue. He said XRP faced an “existential regulatory threat” during the SEC’s lawsuit.
He noted that no major institution wanted to build real-world products on a network that faced that level of risk. He said the lawsuit froze adoption. His point was clear. The barrier was not technology, but uncertainty.
Matt Hougan, CIO of Bitwise, says the reason they launched a Ripple ETF is simple: the playing field has finally changed.
For years, Ripple and XRP were held back by an existential regulatory threat. The SEC lawsuit froze real-world adoption and made major partnerships nearly… https://t.co/szyM53PQiM pic.twitter.com/Ho42F9EAts
— Xaif Crypto🇮🇳|🇺🇸 (@Xaif_Crypto) December 4, 2025
This legal battle ended in August, and Hougan stated that this development changed the landscape. He said the blockchain now has “a chance” to compete on a level playing field. He pointed out that this change does not guarantee success. It does, however, enable XRP to gain the use cases that its supporters have long discussed.
Xaif reinforced this point in his caption when he said the lawsuit held back adoption and stopped partnerships at scale. His comments aligned with Hougan’s reasoning.
A Strategic ETF Launch
Hougan highlighted the ETF structure as a key step for investors who want exposure through regulated markets. He said Bitwise launched the product to give the community “high-quality exposure” through a simple ticker.
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He also said Bitwise reserved the ticker XRP in advance. The firm moved as soon as the regulatory landscape allowed it. This decision gives institutions a direct path to allocate capital. It also strengthens XRP’s position among other approved digital asset funds.
Rising Institutional Interest in XRP
The Bitwise XRP ETF entered the market with strong interest from investors. It had a trading volume of $25.7 million on the first day, with $107.6 million in assets under management (AUM). ETFs often attract traditional firms that need compliance-ready exposure. Bitwise’s ETF launch shows that institutions are interested in XRP.
Greater regulatory clarity tends to support long-term confidence. With the lawsuit now over, access through an ETF increases market depth. XRP now competes for institutional flow that once excluded it. If new partnerships and enterprise use appear, XRP could gain a stronger position in global finance.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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