Despite facing skepticism from various quarters, XRP may soon emerge as a significant player in the cryptocurrency landscape. Matt Hougan, Chief Investment Officer at Bitwise, recently expressed optimism about the potential success of an XRP exchange-traded fund (ETF). He predicts that such an ETF could “easily become” a $1 billion fund shortly after its launch, emphasizing that critics are underestimating the asset due to a generally bearish sentiment towards XRP within the crypto community.
Hougan highlights that the real key to success lies in engaging with genuine investor enthusiasm rather than swaying crypto insiders. He noted that the “XRP Army,” a dedicated group of retail investors, is remarkably bullish and passionately supports XRP. This strong community backing is seen as a significant driving force for future investment flows.
Currently, there are around 20 applications for XRP ETFs pending with the U.S. Securities and Exchange Commission (SEC). This places XRP just behind Bitcoin and Solana, which each have approximately 23 filings, and ahead of Ethereum’s 16, as reported by Bloomberg Intelligence’s Eric Balchunas. He anticipates a surge in the number of crypto-based ETFs, projecting that the current count of fewer than five may surpass 200 within a year, bolstered by growing institutional interest.
Recent data from Santiment indicates that large investors, often referred to as “whales,” have accumulated nearly $560 million in XRP over the past week. This surge in purchasing activity coincides with critical upcoming deadlines for XRP ETF approvals at the SEC, suggesting that significant players are strategically positioning themselves.
Hougan emphasizes that the narrative surrounding XRP is more heavily influenced by its community rather than just its technological merits. He stresses the loyalty of the XRP Army, which has remained steadfast throughout Ripple’s ongoing legal disputes with the SEC. This commitment is contrasted with other altcoins that may attract attention for their technical features but lack substantial trader support.
Critics often point to Ripple’s centralized control over XRP’s supply and its primary focus on institutional payments, arguing that these factors undermine its potential. However, Hougan believes these concerns may overlook a pivotal aspect. He asserts that institutional adoption does not hinge on the approval of crypto purists but rather on real market demand. Citing the success of Bitcoin ETFs, which generated $107 billion in their first year despite initial skepticism, he argues that demand ultimately trumps ideological objections.
As the cryptocurrency landscape evolves, the implications of an XRP ETF could be far-reaching, particularly if the fervor of its community translates into substantial investment flows. At present, XRP is priced at $2.5219, poised to attract further attention as developments unfold regarding its ETF filings.
