In an exciting development for the cryptocurrency world, XRP, the fifth most significant digital asset, has secured a listing with Bitwise Asset Management, the world’s largest digital asset index fund manager. This announcement comes as a major show of support for XRP, following a challenging period marked by an SEC lawsuit. Matt Hougan, the Chief Investment Officer at Bitwise, shared this significant update during a recent interview on the Thinking Crypto podcast, igniting enthusiasm within the XRP community.

XRP’s Rise in Bitwise’s Rankings

During the interview, the host, Tony Edward, questioned Matt Hougan about Bitwise’s intentions regarding XRP, especially in light of recent legal developments surrounding the digital asset. In response, Hougan confirmed that XRP is now among the holdings of Bitwise Asset Management, specifically within the Bitwise 10 Crypto Index Fund (BITW). What’s even more remarkable is that XRP has quickly climbed the ranks to become Bitwise’s third most significant holding, with a weight of 3.2%.

Hougan explained, “Yeah, it is a holding now of the Bitwise 10. So it is the third largest holding at a 3.2% weight.”

The Logic Behind Delisting and Relisting

To understand the significance of XRP’s recent listing with Bitwise, it’s essential to revisit the events of the past. Bitwise had initially removed XRP from its Crypto Index Fund back in 2020 due to the legal action taken by the U.S. Securities and Exchange Commission (SEC) against XRP.

In December 2020, the SEC alleged that XRP was an unregistered security token, asserting that Ripple Labs had marketed it without the necessary federal authority. This legal challenge introduced an element of risk into the market, which prompted Bitwise to delist XRP. Hougan noted, “We removed it from the index the day the lawsuit came from the SEC because it injected a fair amount of risk into the market.”

However, a significant turning point occurred on July 13 when a U.S. federal court ruled that XRP is not a security. This verdict provided clarity and assurance, prompting Bitwise to welcome XRP back into its Bitwise 10 Crypto Index Fund. As a result, XRP has reclaimed its position within Bitwise’s portfolio, emerging as the third-largest holding.

This decision has significant implications for XRP and the cryptocurrency market as a whole. With the legal uncertainty resolved, XRP has been able to regain its standing and position in the Bitwise index fund, signaling increased confidence in the digital asset.

XRP’s Resurgence in the Crypto Market

The return of XRP to Bitwise’s portfolio is not an isolated event. In the wake of the July ruling, XRP has seen a resurgence in the cryptocurrency market. It is now listed on nearly all U.S.-based crypto trading platforms, a clear indication of its growing acceptance and recognition within the industry.

This resurgence is a testament to the resilience of XRP and its dedicated community of supporters, often referred to as the “XRP Army.” Despite the challenges and legal hurdles, XRP has maintained its relevance in the ever-evolving world of digital assets.

The Implications for XRP and the Crypto Market

XRP’s reinstatement in Bitwise’s Bitwise 10 Crypto Index Fund carries several important implications. It underscores the importance of regulatory clarity within the crypto space. The resolution of the SEC lawsuit has provided much-needed legal certainty, allowing XRP to regain its footing in the market. This development could pave the way for increased institutional interest in XRP, as the legal cloud that once loomed over it has dissipated.

Furthermore, XRP’s rising prominence in Bitwise’s fund highlights its enduring appeal to investors and its strong potential for long-term growth. It serves as a clear indication that XRP has not only weathered the storm but is positioned to thrive in the evolving crypto landscape.

The crypto market itself stands to benefit from this move. The inclusion of XRP in Bitwise’s index fund further diversifies the offerings for investors, providing them with exposure to a broader range of digital assets. This diversification can help mitigate risk and promote a more balanced investment strategy.

In a broader context, XRP’s journey from legal challenges to reintegration into prominent crypto portfolios reflects the maturation of the cryptocurrency industry. Regulatory hurdles and legal battles have been part of the industry’s evolution, and XRP’s success story serves as a beacon of hope for other digital assets facing similar challenges.

Looking Ahead

As XRP continues its resurgence, investors and enthusiasts eagerly anticipate what the future holds for this digital asset. With legal uncertainties behind it and growing institutional support, XRP is poised for an exciting chapter in its journey. The evolving landscape of cryptocurrencies promises further developments and opportunities, making it an exciting time for the entire crypto community.

In conclusion, XRP’s listing in Bitwise’s Bitwise 10 Crypto Index Fund is a significant milestone for both the digital asset and the cryptocurrency market. It signals the resolution of a challenging legal issue and the resurgence of XRP, offering renewed confidence to investors and the crypto community. This move serves as a reminder of the ever-changing dynamics of the crypto world, where persistence and resilience can lead to remarkable comebacks.