Bitwise CIO Matt Hougan Reveals the Strategic Thinking Behind the Company's Filing for a Spot-Based Exchange-Traded Fund (ETF) for XRP

Hougan made this known during an interview with Tony Edward, the host of the Thinking Crypto podcast. In the interview, Edward asked Hougan to comment on what prompted the company's decision to apply for an XRP ETF before the U.S. election.

Matt Hougan, CIO of Bitwise, has disclosed the strategic thinking behind the company's recent filing for a spot-based exchange-traded fund (ETF) for XRP.

Hougan shared his insights during an interview with Tony Edward, the host of the Thinking Crypto podcast. In the interview, Edward prompted Hougan to comment on what drove Bitwise's decision to apply for an XRP ETF ahead of the U.S. election.

Highlighting XRP's strengths, Hougan first pointed to its strong community support and the underlying technology, the XRP Ledger (XRPL). He noted that despite XRP's potential, people have yet to see the coin's full capability due to the SEC v. Ripple lawsuit.

"The SEC lawsuit is really boxing in what Ripple and XRP could be doing. They're essentially operating with two hands tied behind their back," Hougan stated regarding the impact of the lawsuit.

However, Hougan speculated that if there is a resolution to the industry's regulatory issues, XRP could unleash its full potential in the market. Highlighting XRP's market appeal, Hougan asserted that the coin has a quality that has attracted the interest of Wall Street firms.

"I think it's a really interesting idea [to consider] what can this asset do if it is unleashed," he remarked.

Commenting on why Bitwise filed for an XRP ETF, he revealed that the company only applies for an ETF with full conviction that it will be successful.

"Bitwise doesn't file for fun. We file because we think there is a pathway to launch a product," he stated.

Interestingly, he suggested that Bitwise has a history of persistence, as seen in its Bitcoin ETF pursuit, which took five years before the SEC approved it earlier this year, along with other applications.

For the XRP ETF, Hougan stressed that Bitwise is optimistic about the potential launch of the product, especially with the upcoming administration that could introduce favorable regulations.

It is important to note that Bitwise was the first to file for a spot-based ETF tied to XRP. The company submitted the filing last month amid growing speculation over a potential SEC appeal in the Ripple lawsuit.

Following Bitwise's XRP ETF filing, the SEC filed the next day to appeal the Ripple ruling, drastically reducing the chances of approval.

Meanwhile, NYSE Arca has filed to convert the Bitwise 10 Crypto Index Fund (BITW), which includes 10 crypto assets like XRP, into a spot ETF. Like XRP enthusiasts, Bitwise is hopeful that the U.S. crypto industry may see favorable regulations under the Donald Trump-led administration, which could pave the way for XRP ETFs.

DisClamier: This content is informational and shouldn't be considered financial advice. The views expressed in this article may include the author's personal opinions and don't necessarily reflect The Crypto Basic opinion. Readers are advised to carry out their own research before making any investment decisions.