The possibility of a Securities Exchange Traded Fund (ETF) for XRP has attracted a lot of attention from the cryptocurrency community. Recently, CBOE has filed a 19b application for Bitwise's XRP ETF, along with other companies seeking approval. Matt Hougan, Chief Investment Officer at Bitwise, discussed the potential of these ETFs in a recent discussion, clarifying the current status of the XRP ETF.
Approval of XRP ETF: Challenges & Progress
In an interview with Thinking Crypto, Hougan explained that there have been several starts and stops with ETF applications in the past, with some applications being filed and then withdrawn. However, the fact that multiple issuers are resubmitting their applications suggests that the U.S. Securities and Exchange Commission (SEC) is opening up to investigating these products, although approval is not guaranteed.
While the conversation around digital assets like XRP and Solana is heating up, Hougan is optimistic that the SEC is becoming more receptive to considering these ETFs. He stated that the prospects for an XRP ETF have improved in the past few months, and with more progress being made, there is a possibility that the SEC will take a more flexible approach to approving these assets.
"I think you have to be realistic about the pace. I think even a crypto-friendly SEC is likely to take time, analyze, and gather public input. My view is this is a long-term game. Our view is the SEC wants to have a supportive view and help investors access these assets through ETP. We'll know in the next six months."
As he said.
Matt Hougan's Vision for the XRP ETF
Hougan pointed out that, historically, commodity ETFs have only been launched when there is a managed futures market for that commodity, such as gold and even Bitcoin. While a futures market is not a necessity for an XRP ETF, it would be an important factor in the approval process.
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