XRP Set to Skyrocket? Bitwise CIO Warns of Market Shock After Lawsuit
Legal Uncertainty Has Suppressed XRP for Years - Could a Favorable Ruling Unleash Its True Potential?
In a recent interview with the Paul Barron Network, Bitwise Chief Investment Officer (CIO) Matt Hougan shared his insights on the long-running legal battle surrounding XRP and its potential market reaction once the dust settles. According to Hougan, XRP - long constrained by regulatory hurdles - may be significantly undervalued, setting the stage for a dramatic market correction if a favorable resolution emerges.
The Lingering Legal Battle
Since 2020, XRP has been locked in a high-stakes legal dispute with the US Securities and Exchange Commission (SEC), which accused Ripple Labs of conducting an unregistered securities offering. This lawsuit has cast a cloud over the token, stifling its growth within the US market and prompting multiple major exchanges to delist it.
Now, with a potential final ruling expected by April 16, according to host Paul Barron, speculation is mounting over XRP’s next move. Hougan believes that a resolution could unleash significant pent-up demand and change the narrative surrounding the asset.
“From my 30,000-foot view, specific to XRP, I think there’s a significant chunk of the crypto market that has sort of written it off or forgotten about it. And I think that part of the market is wrong,” Hougan stated.
A Post-Lawsuit XRP Boom?
Hougan’s analysis suggests that XRP remains a wildcard in the crypto industry. While Bitcoin (BTC) and Ethereum (ETH) have enjoyed institutional inflows and widespread adoption, XRP has been left in regulatory limbo. However, if the lawsuit concludes with clarity that allows unrestricted use within the US, the true scope of XRP’s global financial utility could finally come into focus.
“The reality is, XRP has been suppressed by litigation for multiple years, and we don’t yet know what it can do on the global stage when it’s freed from those restraints,” he added. While avoiding direct price predictions, Hougan emphasized that both institutional and retail sentiment could shift rapidly if XRP gains regulatory clarity in the US.
Japan’s XRP Bet and the Potential for Global Adoption
The discussion also explored Japan’s aggressive approach to XRP adoption, led by financial giant SBI Holdings. In a significant milestone, XRP has now surpassed Ethereum as the most-held crypto asset among Japanese investors, signaling strong institutional confidence.
Paul Barron highlighted this trend, comparing SBI’s strategic XRP accumulation to Michael Saylor’s Bitcoin playbook: “SBI seems to be doing with XRP what Michael Saylor did with Bitcoin—strategically accumulating and positioning it for long-term institutional use.”
Hougan agreed, pointing out that XRP’s role in international remittances and liquidity solutions remains largely underappreciated, mainly due to the ongoing lawsuit suppressing its market evaluation.
XRP ETF on the Horizon?
Another hot topic in the interview was the possibility of a spot XRP exchange-traded fund (ETF). While Hougan refrained from revealing specifics about Bitwise’s potential ETF filing, he did underscore the firm’s confidence in XRP’s market potential.
“We don’t file for ETPs for fun. We file for them because we think they can launch, and we think there is a significant audience, and we think it’s an important asset,” Hougan stated.
The Market Awaits a Verdict
Some analysts argue that XRP’s legal troubles have already been factored into its price, but Hougan suggests otherwise. If the SEC case concludes favorably, XRP could see a major repricing event, with re-listings on US exchanges, new institutional flows, and expanded banking adoption all contributing to a potential surge.
“There’s no guarantee XRP will be enormously successful, but there’s equally no guarantee that it won’t be,” Hougan remarked.
