Despite Growing Frenzy Over XRP ETFs, BlackRock Remains Silent

With Ripple's XRP lawsuit settlement finally in place, the crypto community is abuzz with anticipation over a possible XRP ETF launch.

The crypto community is eagerly awaiting the launch of an XRP ETF, especially with Ripple's lawsuit finally settled. While many platforms are applying for the product, the world’s largest asset management company, BlackRock (NYSE:BLK), is silent on the matter.

Expert All Things XRP is detailing BlackRock’s vision and possible reasons behind its silence in a series of X posts. Let’s read through the key points that shed light on the asset manager’s strategic approach to crypto investments.

BlackRock's silence on XRP ETF sparks attention

Despite the growing frenzy over XRP exchange-traded funds, the world’s largest asset management company, BlackRock, remains silent, sparking significant attention.

Expert All Things XRP, known for deciphering the intricacies of the crypto market, has shared insights into why BlackRock is holding back from applying for an XRP ETF, despite its successful applications for Bitcoin and Ethereum ETFs.

Highlighting several factors, the expert explained that the asset manager’s focus on Bitcoin and Ethereum is one of the main reasons to shy away from XRP.

BlackRock is currently riding the wave of success with Bitcoin and Ethereum. iShares Bitcoin Trust boasts over $30 billion in Assets Under Management (AUM), and BlackRock’s ETH ETF has reached $1 billion in AUM in just two months.

In light of this success, the platform is cautiously exploring other altcoins to mitigate potential risks.

Moreover, XRP may not meet BlackRock’s internal thresholds for demand, liquidity, and legal clarity. According to the company’s ETF executives, only Bitcoin and Ethereum currently meet these requirements.

Regulatory concerns are also a factor, as noted by the expert. Although both Ripple and the SEC dropped their appeals in the XRP lawsuit, the case is not officially over, and the label of “security” still lingers around. This uncertainty may deter the investment giant from applying for an XRP ETF.

Recently, All Things XRP shared insights on CEO Brad Garlinghouse's crucial role in Ripple's growth.

Who will launch the first XRP ETF?

Interestingly, BlackRock is adopting a wait-and-see approach. The expert noted that competitors like Grayscale and Franklin Templeton will likely apply first, allowing them to face the possible regulatory hurdles.

However, once one of these platforms launches an ETF, the door will open for BlackRock to easily apply for its own product. This approach will also allow BlackRock to gauge institutional appetite for XRP products and assess the risk landscape.

Whoever takes the lead, an XRP ETF launch is poised for a significant price surge in the Ripple coin.

In addition, the asset manager’s fake XRP ETF filing in 2023 has further strengthened their cautious stance. Previously, the filing went viral and sparked ambiguity within the crypto market.

BlackRock had to publicly deny involvement, which could damage their reputation. This incident might have made them cautious about pursuing an XRP ETF, at least for now, as they may want to avoid similar PR issues.

Will BlackRock Launch an XRP ETF?

Additional factors like lack of demand and XRP’s relatively small market share have also contributed to the asset manager’s decision. However, the investment firm is expected to push for an XRP ETF in the future after tackling all the possible hurdles.

BlackRock is known for launching products at the right moment, when the odds are in their favor. The strategic move is expected when XRP meets complete regulatory clarity and market stability.

As per All Things XRP, BlackRock is envisioning dominating the space. The expert cited, “But if and when they do, it’ll be to dominate the space — not just participate.”