Key Takeaways
- Despite the frenzy surrounding the almost concluded Ripple vs. SEC case, BlackRock has remained silent on the highly anticipated XRP ETF launch.
- Expert All Things XRP has shared some possible reasons for BlackRock’s hesitation.
- XRP held above $2 despite a weekly drop, supported by optimism over a legal resolution and ETF potential.
Speculation about BlackRock’s potential spot XRP ETF has intensified, especially following the latest development in the ongoing Ripple vs. SEC case. However, the company’s asset manager has given no indication of its future direction.
According to filings on the spot XRP ETF, other asset managers like 21Shares, Bitwise, Canary Funds, Franklin Templeton, Grayscale, and WisdomTree have filed XRP-spot ETF applications, but BlackRock (BLK) has yet to do so. Commenting on the apparent silence by the market leader, renowned XRP investors All Things Crypto stated:
“Their iShares Bitcoin Trust hit $30B in AUM. The ETH ETF crossed $1B in just 60 days. Why add risk when you’re dominating the two most proven crypto assets?”
Hesitation to Launch a Spot XRP ETF
Details of the direction the XRP vs. Ripple lawsuit is likely to take are finally falling into place. The broader crypto community is anticipating the end and a possible announcement of the spot XRP ETF launch; the frenzy hasn’t influenced the world’s largest asset management company, BlackRock, to remain silent, sparking significant attention.
According to the expert analyst, BlackRock’s hesitation to launch a spot on many factors, such as regulatory concerns, market dynamics, and strategic considerations, may drive the XRP ETF. All Things Crypto added in his series of texts on X:
“Yes, the SEC lawsuit is behind Ripple now. But for institutions like BlackRock, the label ‘security’ doesn’t fade fast, especially when the SEC case isn’t officially over. BlackRock’s ETF execs have made it clear: Bitcoin and Ethereum are the only ones that check their boxes for demand, liquidity, and legal clarity. XRP is close – but not quite there yet.”
Success With Bitcoin and Ethereum ETFs
According to the analyst, BlackRock’s focus on Bitcoin and Ethereum ETFs could be why the asset manager isn’t upfront about XRP. Data shows that BlackRock is currently enjoying great success with the spot BTC and ETH ETFs, with reports showing iShares Bitcoin Trust has over $30 billion in Assets Under Management (AUM).
Moreover, the asset manager’s ETH ETF has garnered over $1 billion in AUM in just two months. It may now appear that the platform has slowed down in light of its success and may have adopted a cautious approach to exploring other altcoins to mitigate potential risks. The expert concludes by saying:
“They’ll move when the odds are stacked in their favor. Every ETF launch is about timing. BlackRock is waiting for the moment XRP hits regulatory and market clarity, and their competitors show proof of success.”
Conclusion
After falling briefly on Sunday and partially reversing the gains made last Saturday to close the day at $2.077, XRP has tracked the trajectory of the broader crypto market by dropping 0.13% to a total crypto market cap of $2.65 trillion. The token ended the week at 1.95% lower but avoided a drop under $2.00, building on the possibility of the complete SEC appeal withdrawal. For an asset manager known for launching products at the right moment as long as the odds are in their favor, analysts believe BlackRock could make a move on the spot XRP ETF when Ripple finally meets complete regulatory clarity and market stability.
Frequently Asked Questions (FAQs)
What is an XRP ETF?
An XRP ETF is an investment vehicle that allows investors to buy into XRP without owning or storing the currency. ETFs are essential because they provide a regulated way for investors to enter the crypto market, making them more accessible and potentially more appealing to institutional players.
How could an XRP ETF impact regulatory clarity?
If the SEC approves it, spot XRP ETFs could lead to more regulatory clarity around cryptocurrencies. This would signal a growing acceptance of Crypto as a legitimate investment class.
What benefits could an XRP ETF bring to institutional investment?
Should they be approved, XRP ETFs could provide a legitimate avenue for institutional investment in cryptocurrencies. Regulated products could attract more institutional players and broaden the range of investments in the crypto space.
