In the dynamic realm of cryptocurrency, developments such as XRP ETF filings, the appointment of a new SEC Chair, and the introduction of the RLUSD stablecoin have intensified speculations regarding the potential launch of an XRP ETF. Notably, BlackRock, a significant player in the ETF landscape, has not announced any recent plans to file an ETF application for XRP or other altcoins. This revelation has sparked curiosity within the crypto community, as BlackRock played a pivotal role in the approval of spot Bitcoin and Ethereum ETFs.
Focus on Bitcoin and Ethereum ETFs
The anticipation of an XRP ETF filing from BlackRock has been brewing among XRP enthusiasts for months. This buzz originated from a fake XRP ETF filing on the State of Delaware website last year, causing XRP prices to soar by over 15%. Despite the excitement, BlackRock swiftly refuted the claims, clarifying that the filing was fraudulent. Jay Jacobs, head of BlackRock’s ETF department, dismissed rumors about an XRP ETF application, highlighting the limited reach of current Bitcoin and Ethereum ETFs. BlackRock aims to expand the accessibility of these ETFs to a broader client base before considering new altcoin ETFs.
Jacobs emphasized that only a minor segment of BlackRock’s clientele holds shares in the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). His comments, shared by Bloomberg’s ETF Analyst Eric Balchunas on social media, underscore BlackRock’s focus on enhancing the adoption of Bitcoin and Ethereum ETFs rather than launching new ETFs linked to altcoins like XRP.
Other Players in the XRP ETF Space
While BlackRock maintains its current stance, other firms, including Bitwise, Canary Capital, 21Shares, and WisdomTree, have filed applications for an XRP ETF, with expectations of approval by the end of 2025. The crypto industry buzzes with anticipation as these applications could mark a significant step toward mainstream adoption of XRP-based financial products.
A Strategic Decision?
BlackRock’s cautious approach has found support among some investors who believe that a methodical, step-by-step strategy is preferable to prematurely launching a new ETF, which could exacerbate market volatility. This measured approach aligns with the broader market sentiment, as evidenced by the Grayscale XRP Trust’s impressive 300% return since May. Prominent crypto figure Ben Armstrong, known as “The BitBoy,” views this robust return as a positive indicator for a potential XRP ETF launch in the near future.
RLUSD News Fuels Further Speculation
The recent approval of Ripple’s stablecoin RLUSD by the New York Department of Financial Services (NYDFS) has further fueled speculation about an XRP exchange-traded fund. A regulated market for XRP, facilitated by RLUSD, could trigger an XRP rally and bolster the case for an ETF.
In conclusion, while BlackRock remains focused on expanding its Bitcoin and Ethereum ETFs, the evolving landscape of cryptocurrency continues to generate interest and speculation about future XRP ETF offerings. As the crypto market matures, the potential for innovative financial products like XRP ETFs remains a tantalizing possibility.
