Bitwise CIO Explains Why XRP Draws Institutional Investors

Matt Hougan, chief investment officer at Bitwise, explained why $XRP appeals to institutional investors during a video discussion shared on Sept. 28. He highlighted the token's durability and familiar financial applications, which give advisors confidence in its long-term viability. Hougan described $XRP as one of the "Mount Rushmore assets in crypto," emphasizing its established track record as a key factor in its appeal.

The Bitwise CIO noted that financial advisors often question the staying power of cryptocurrencies. $XRP's long history and recognizable use cases help address those concerns. He pointed to stablecoins, cross-currency transfers, and liquidity as practical applications that resonate with his audience. These themes align with recent activity on the $XRP Ledger (XRPL), where stablecoin supply and tokenization expanded in 2026 despite a weaker token price.

Hougan also mentioned Ripple's bank charter efforts, which received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) on Dec. 12, 2025. This development further strengthens $XRP's case among advisors who understand traditional financial systems. Meanwhile, $XRP exchange-traded fund (ETF) assets grew 80% in the third quarter, reaching a record $1.77 billion before declining to $1.658 billion by Oct. 2.

The Bitwise $XRP ETF, trading on NYSE Arca, had approximately $606.47 million in net assets as of Oct. 1. Hougan's insights underscore why institutional investors find $XRP a compelling addition to their portfolios, combining durability with real-world financial applications.