The cryptocurrency market is abuzz with discussions about the potential launch of an XRP Exchange-Traded Fund (ETF). Recent developments such as XRP ETF filings, the appointment of a new SEC Chair, and the introduction of Ripple’s RLUSD stablecoin have intensified these discussions. However, in a surprising turn of events, BlackRock has announced that it currently has no plans to file an ETF application for XRP or any other altcoins. This revelation has sparked widespread speculation within the crypto community, especially given BlackRock’s pivotal role in the success of spot Bitcoin and Ethereum ETF approvals.
Focus on Bitcoin, Ether ETFs
Despite the swirling rumors, BlackRock has firmly denied any intentions of filing for an XRP ETF. Jay Jacobs, the head of BlackRock’s ETF department, clarified the company’s stance, stating that the previous filing reported was fake. He emphasized that while Bitcoin and Ethereum ETFs have made some progress, they have only reached a limited audience. The company’s current focus is on expanding the reach of these two ETFs to a broader client base.
Jacobs highlighted that only a small proportion of BlackRock’s clients hold shares in the iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). To address this, the company aims to enhance the accessibility of these ETFs, ensuring they reach a wider audience. Jacobs stressed that there are no immediate plans to launch new ETFs linked to altcoins, including XRP. This sentiment was echoed by Bloomberg’s ETF Analyst Eric Balchunas, who shared Jacob’s comments on social media, reiterating BlackRock’s current strategic focus.
A Good Decision?
The decision by BlackRock to hold off on launching new crypto ETFs, including an XRP ETF, has found support among some investors. They argue that a cautious, step-by-step approach is more prudent than hastily launching new products, which could exacerbate market volatility. Additionally, Grayscale’s XRP Trust has seen a remarkable 300% return since May, which has been noted as a positive indicator of the potential for an XRP ETF launch in the U.S. by prominent crypto market figure Ben Armstrong, also known as “The BitBoy.”
RLUSD News Spikes Speculations
The recent approval of Ripple’s stablecoin, RLUSD, by the New York Department of Financial Services (NYDFS), has further fueled speculations about an XRP ETF. The introduction of RLUSD is expected to create a more regulated market for XRP, potentially leading to a rally in its value. This development has added another layer of intrigue to the ongoing discussions about the future of XRP in the financial markets.
In conclusion, while the crypto community remains optimistic about the potential launch of an XRP ETF, BlackRock’s current focus remains on Bitcoin and Ethereum ETFs. As the market evolves, investors and industry leaders continue to watch closely for any signs of change in BlackRock’s strategy or regulatory developments that could pave the way for an XRP ETF in the future.
