The cryptocurrency world is abuzz with discussions surrounding XRP ETF developments. Recent events, such as the XRP ETF filings, the appointment of a new SEC Chair, and the RLUSD stablecoin announcement, have intensified speculation of an impending XRP ETF launch. Despite these developments, BlackRock has not disclosed any intentions to submit an ETF application for XRP or any other altcoins, leaving the crypto community in suspense.
Focus on Bitcoin and Ether ETFs
BlackRock’s lack of movement towards an XRP ETF has surprised many, especially given their pivotal role in the approval of spot Bitcoin and Ethereum ETFs. Over recent months, there was a strong anticipation among XRP supporters for a potential XRP ETF filing by BlackRock. This speculation was fueled by a false XRP ETF filing that surfaced on the State of Delaware website last year, which subsequently caused XRP’s price to surge over 15%.
In response, BlackRock promptly debunked the false filing. Jay Jacobs, who leads BlackRock’s ETF department, dismissed the rumors regarding the company’s intent to file an XRP ETF application. He emphasized that their current focus remains on expanding Bitcoin and Ethereum ETF offerings. Jacobs highlighted that only a small percentage of BlackRock’s clients currently hold shares in iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). Therefore, their priority is to increase these ETFs’ accessibility to a broader client base rather than introducing new altcoin ETFs.
Eric Balchunas, a Bloomberg ETF Analyst, echoed Jacobs’ sentiments, noting that the focus remains on Bitcoin and Ethereum ETFs. He quoted Jacobs on X, stating, “We’re really just at the tip of the iceberg with Bitcoin and especially Ethereum. Just a tiny fraction of our clients own ($IBIT and $ETHA), so that’s what we’re focused on (vs. launching new altcoin ETFs).”
Meanwhile, firms like Bitwise, Canary Capital, 21Shares, and WisdomTree have filed applications for an XRP ETF, with expectations for approvals by the end of 2025. This comes in the wake of positive developments in the crypto industry, fueling rumors of an imminent XRP ETF.
A Strategic Approach?
BlackRock’s deliberate approach has garnered support from some investors who argue that a methodical, step-by-step strategy is more prudent than hastily launching a new ETF, which could exacerbate market volatility. Additionally, Grayscale’s XRP Trust has demonstrated a formidable 300% return since May, which some, like crypto market influencer Ben Armstrong, interpret as a promising indicator of a potential XRP ETF launch in the United States.
RLUSD News Fuels Speculation
The New York Department of Financial Services’ (NYDFS) recent approval of Ripple’s stablecoin, RLUSD, has further stirred speculation about an XRP exchange-traded fund. This regulatory milestone could pave the way for a regulated market for XRP, potentially catalyzing a significant rally in XRP’s value.
In conclusion, while BlackRock remains cautious, the crypto community remains optimistic about the potential for an XRP ETF. The evolving dynamics of the cryptocurrency market, along with strategic developments like the RLUSD approval, continue to shape the narrative surrounding the future of XRP ETFs.
