Matt Hougan, chief investment officer at Bitwise, predicts that an XRP exchange-traded fund will easily reach $1 billion in assets within its first few months. He attributes this to the passionate 'XRP Army' community, despite bearish views from crypto insiders. Currently, about 20 XRP ETF filings are pending with the US Securities and Exchange Commission.
Matt Hougan, Bitwise's chief investment officer, expressed strong optimism about the potential launch of an XRP ETF in an interview with DL News. He stated that such a fund would 'easily become' a billion-dollar entity within its initial months, far surpassing skeptical expectations in the crypto industry.
Hougan emphasized that ETF success hinges on buyer demand rather than industry consensus. 'People underestimate it because the median opinion in crypto is pretty bearish on XRP,' he said. 'But what drives flows? A group of people that buys the asset — and the XRP Army is incredibly bullish and loves XRP.' The 'XRP Army' refers to a loyal community of retail holders who have supported the Ripple-linked cryptocurrency through years of regulatory challenges, including Ripple's ongoing legal battle with the SEC.
This prediction comes amid growing interest in crypto ETFs. There are currently about 20 XRP ETF filings pending with the SEC, behind Bitcoin and Solana's 23 each and Ethereum's 16, according to Bloomberg Intelligence ETF analyst Eric Balchunas. Balchunas also forecasts that the number of crypto assets with ETFs—fewer than five at present—will exceed 200 within the next 12 months.
Recent market activity supports Hougan's view. Whales have accumulated nearly $560 million in XRP over the past week, per Santiment data, coinciding with expiring approval deadlines for three XRP ETF applications. Hougan added, 'Flows will dramatically exceed what people are expecting. ETFs die in apathy, and that won’t be the case here.'
Critics highlight XRP's centralized structure, Ripple's control over its supply, and its institutional focus over decentralization. However, Hougan argues these factors are irrelevant to ETF inflows, citing Bitcoin ETFs' $107 billion in first-year assets and a recent staked Solana ETF's record launch as evidence of demand-driven success. He concluded, 'The XRP Army will smash-buy the ETF.'