XRP ETF on the Horizon: BlackRock May Soon Join the Fray
The recent resolution in Ripple’s long-standing legal battle with the U.S. SEC has sent ripples through the crypto community, with many experts speculating that BlackRock, the world’s largest asset manager, may soon file to launch an XRP exchange-traded fund (ETF). This move would be a significant development, given BlackRock’s existing success with its Bitcoin (BTC) and Ethereum (ETH) funds, IBIT and ETHA.
Background: Ripple’s Legal Victory
Ripple’s case against the SEC, which centered on whether XRP constitutes a security, has finally come to a close. Although the court had already ruled in 2023 that XRP is not a security in secondary markets, the case remained open due to pending civil penalties. With the official dissolution of the case, the door is now open for potential XRP ETFs to enter the market.
Speculation and Odds of Approval
Nate Geraci, former president of ETF Store, believes that BlackRock may have been waiting for legal clarity before submitting an application for an iShares XRP ETF. Geraci argues that it wouldn’t make sense for BlackRock to limit its crypto ETF lineup to just BTC and ETH, given the potential value of other crypto assets. In fact, Bloomberg analysts James Seyffart and Eric Balchunas have pegged the approval odds for an XRP ETF at 95%, with a predicted launch in the second half of the year.
Other asset managers, including Grayscale, 21Shares, Canary Capital, and Bitwise, have already filed with the SEC to launch an XRP ETF. While the SEC has delayed its review process on some of these applications, industry expectations for approval remain high. On Polymarket, bettors see an 88% chance of an XRP ETF launching before year-end, with odds increasing by 16% in the last 24 hours.
Market Reaction and Implications
The news has had a significant impact on the XRP price, which has jumped 10.7% over the past 24 hours, with trading volume increasing by 197% to $11.9 billion. The price rebound marks a sharp recovery from several days of underperformance, reigniting bullish momentum around the token. If an XRP ETF is indeed approved, it could lead to increased mainstream adoption and investment in the crypto asset.
As the crypto landscape continues to evolve, the potential launch of an XRP ETF is an exciting development that could have far-reaching implications for the industry. With BlackRock potentially joining the fray, the stage is set for a significant expansion of crypto investment opportunities, and investors are eagerly awaiting the next move.
