Bitwise Asset Management CEO Hunter Horsley believes an XRP exchange-traded fund (ETF) could open the floodgates for traditional financial capital to flow into the crypto market. Speaking in a recent interview with CoinDesk, Horsley explained that an XRP ETF would likely attract enormous interest from both retail and institutional investors — potentially tapping into more than $100 trillion in traditional assets.
According to Horsley, the level of enthusiasm around XRP far surpasses that of many other cryptocurrencies. “There’s a ton of energy and enthusiasm around XRP,” he said, emphasizing that such strong community backing is a powerful signal for potential ETF demand.
XRP’s Unique Position in the Crypto Market
Horsley noted that XRP’s passionate global community gives it a clear advantage in the ETF race. He pointed out that one of the biggest challenges for any ETF is generating sustained investor interest — something XRP already enjoys organically.
“In traditional finance, the death of an ETF is apathy,” he said. “But that’s clearly not the case with XRP.”
XRP’s appeal stems not only from its active community but also from its established use cases in global payments and cross-border transactions. Ripple, the company behind XRP, continues to expand its presence in financial infrastructure, building partnerships with banks and payment providers worldwide. This real-world adoption could further enhance the attractiveness of an XRP ETF to institutional investors seeking digital asset exposure.
Traditional Finance Could Flow Into XRP
Horsley highlighted that an XRP ETF could serve as a vital bridge between the $100 trillion traditional finance market and the emerging digital asset ecosystem. He explained that ETFs make it easier for large funds, asset managers, and institutional investors to gain regulated exposure to crypto assets without having to hold the tokens directly.
“I think if they have the opportunity to have exposure to and trade XRP, it’ll be a very useful and high-demand product,” Horsley said.
With ETFs for Bitcoin and Ethereum already making significant inroads among traditional investors, many analysts believe XRP could be the next major digital asset to benefit from institutional adoption. The approval of an XRP ETF could bring increased liquidity, improved price discovery, and greater market stability — all essential components for long-term growth.
Volatility to Remain in the Short Term
Despite his optimistic outlook on XRP’s long-term potential, Horsley cautioned that volatility will remain a defining characteristic of crypto markets for at least the next year. He explained that while Bitcoin is gradually stabilizing as more investors agree on how to value it, other large-cap assets such as XRP, Ethereum, and Solana are still undergoing a phase of price discovery.
According to Horsley, this is a natural part of market evolution. As investor understanding of these assets deepens, their price movements should eventually become less erratic. “Bitcoin is maturing because people are reaching a consensus about what it is and how to value it,” he said. “That consensus hasn’t yet fully formed for XRP and other altcoins.”
Investors Still Forming Consensus on Major Altcoins
Horsley believes that part of the continued volatility comes from the fact that many institutional investors are still developing frameworks for evaluating digital assets. “Investors are busy — they’re thinking about AI, macroeconomics, government policy, or taking family vacations,” he said, half-jokingly.
This scattered focus means that large institutions have not yet dedicated enough time and resources to fully understand assets like XRP and Solana. As a result, market sentiment remains sensitive to headlines, regulatory developments, and speculative activity.
“So I think that there’s more thought development that will need to take place with Solana, XRP, and Ethereum before consensus emerges on those assets,” Horsley added. “They’ll continue to be volatile for some time to come.”
ETFs Could Help Bring Stability and Clarity
Horsley concluded that the gradual introduction of crypto ETFs could play a pivotal role in shaping a more mature market environment. By providing a regulated pathway for traditional capital to enter the crypto sector, ETFs could help create clearer valuation standards and reduce speculative excesses.
“Growing institutional access through products like ETFs will help investors form a clearer view of what these assets are worth,” Horsley said. “That, in turn, will lead to more stable trading conditions over time.”
With the U.S. Securities and Exchange Commission recently approving several spot crypto ETFs and discussions around XRP ETFs gaining traction, Horsley’s remarks highlight the growing convergence between traditional finance and digital assets.
If an XRP ETF does gain approval, it could not only validate XRP’s position as a leading global digital asset but also mark another major step toward the full integration of blockchain technology into the world’s financial infrastructure.
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