BlackRock not Buying into Ripple’s XRP
Market participants do not expect to see much activity from BlackRock with XRP ETFs
Quick overview
- Market participants believe BlackRock is currently focused on maximizing profits from Bitcoin and Ethereum ETFs rather than pursuing XRP ETFs.
- Despite increasing interest in XRP, it has not reached a level that would prompt BlackRock to enter the market.
- BlackRock is closely monitoring the regulatory landscape, particularly the SEC's responses to XRP ETF filings, before making any decisions.
- The outcome of the ongoing Ripple vs. SEC legal battle will be crucial for the approval and acceptance of an XRP ETF.
Live XRP/USD Chart
Market participants do not expect to see much activity from BlackRock with XRP ETFs, and they believe that the firm focuses on maximizing profits from Bitcoin and Ethereum ETFs.
At the same time, the continued success of these products suggests that BlackRock plans to shift its focus to XRP, but this is temporarily set aside due to weaker XRP demand. CIO Bitwise Matt Hougan highlights that while interest in XRP is increasing, it is not at a level that would prompt action from BlackRock.
Typically, BlackRock waits for sustained interest before leaping into a new market, which XRP has not demonstrated.
ETF expert Nate Geraci claims it is still too early to determine the validity of BlackRock’s approach and points to the firm’s monitors for Grayscale and Franklin Templeton, who seem to be rushing into the XRP ETF market.
He also notes that BlackRock is observing the regulatory landscape, particularly the U.S. SEC’s responses to initial filings of XRP ETFs. Forecasting the SEC’s positions regarding XRP ETFs is challenging in light of the ongoing Ripple vs. SEC legal battle.
Charles Gasparino, a correspondent for FOX Business, states that BlackRock is unlikely to pursue an XRP ETF until the regulatory uncertainty is resolved.
The outcome of the Ripple case will be crucial in determining when the XRP ETF is approved and whether it will be widely accepted. BlackRock’s experience with a fraudulent XRP ETF application in 2023, which caused market confusion, adds to its cautious approach.
According to industry observers, BlackRock is now even more careful about its public image and will only proceed when all market and regulatory conditions are favorable.
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