The post New XRP ETF Theory: Did Loyal XRP Army Trigger Institutional Action? appeared first on Coinpedia Fintech News

The arrival of XRP spot ETFs has revived an important question: did institutional demand push these products to market, or was it the massive, loyal, and hyper-active XRP community that made it possible? Speaking in a recent interview, Bitwise CIO Matt Hougan shared insights that indirectly point to a surprising but logical truth — passion, not price, may be the new fuel for ETF product decisions.

Investors Don’t Always Understand Crypto, They Just Want Exposure

Hougan explained that the average new crypto investor does not necessarily understand the difference between Solana, Ethereum, Cardano or XRP. According to him, fresh capital entering the market usually looks for broad exposure rather than deep technical understanding, and that is why index-based products are likely to become one of the largest crypto ETF categories after Bitcoin.

Why XRP Made the Cut: The Community Factor

When asked what excites him most and how Bitwise selects future single-asset ETFs, Hougan gave a direct hint. He said Bitwise will launch single coin funds in markets where there is a strong, passionate community supporting the asset. Even if parts of the crypto world dislike or doubt a project, it does not matter as long as there is a committed base that wants direct exposure. 

Hougan admitted he is not surprised that XRP’s ETF debut is performing well because XRP has one of the biggest, most loyal and most vocal communities in crypto. He said that skepticism from outsiders does not stop ETF demand if the core holders are deeply invested, confident, and ready to buy.

Price, Sentiment, or Community: What Actually Drives ETFs?

At the time of release, XRP was trading around $2.20 after a weekly decline, but that did not slow ETF momentum. Multiple products are already in line, including Franklin Templeton’s EZRP launching November 18 and Bitwise’s own launch scheduled for November 20, following Canary Capital’s massive $250 million debut on November 13. 

Final Take: XRP Army May Be the Silent Architect

While no executive directly confirmed it, Hougan’s comments reveal a simple reality: ETFs don’t just follow market cap, utility or narratives; they follow where real, sustained interest lives. XRP has survived a lawsuit era, market cycles, criticism from rival communities and years of slow price action, yet its community remains active, united and globally loud. That alone makes it commercially viable in the ETF world.