Why BlackRock Is Avoiding An XRP ETF Filing

While XRP ETFs are starting to draw institutional attention, BlackRock, the world’s biggest fund manager, stays out of the fray. Despite the applications from companies like Grayscale and Bitwise, BlackRock has not taken any steps toward launching an XRP ETF.

BlackRock’s XRP ETF: Why the Delay?

Market experts claim BlackRock sees no strong motivation to dive into the XRP ETF market. The company is already making substantial profits via its Bitcoin and Ethereum ETFs. Its Bitcoin ETF claims superiority over $30 billion in funds, while its Ethereum ETF currently surpassed the $1 billion threshold in only two months.

Given how well these products are doing, BlackRock seems happy to focus on funds that are easier to trade and have more demand from big investors, putting XRP aside for the time being.

The CIO of Bitwise company, Matt Hougan, mentioned that while interest in XRP is increasing, it has not yet surpassed the target needed to quicken BlackRock’s contribution. Generally, BlackRock answers after clarification and ongoing institutional interest before joining a new market, and XRP has not surpassed that barrier yet.

ETF analyst Nate Geraci highlights that BlackRock is likely choosing to hold off and watch. Rather than taking the lead, BlackRock is observing how opponents like Grayscale and Franklin Templeton manage the XRP ETF space. The company is also intensely observing the regulatory landscape, especially how the U.S. Securities and Exchange Commission (SEC) responds to early XRP ETF filings.

Exploring Grayscale’s XRP ETF Filing

While BlackRock is still being careful, Grayscale has already made a move by applying for an XRP ETF. Grayscale’s filing shows that smaller investment companies are becoming more confident that clear rules for XRP are coming soon. Even though the SEC has not approved any XRP ETFs yet, Grayscale’s action adds pressure on regulators to explain the rules clearly and might help speed up the approval process for XRP ETFs.

Ripple vs SEC Result Remains Important

The SEC’s position on XRP ETFs is still unclear, mainly because the Ripple vs. SEC court case is still happening. FOX Business reporter Charles Gasparino says BlackRock probably won’t try to launch an XRP ETF until all the regulatory issues are sorted out. The result of the Ripple case will be very important in deciding when the XRP ETF might get approved and if it will become more widely accepted.

Further emphasising the careful strategy is BlackRock’s interaction with a fraudulent XRP ETF filing in 2023, which creates uncertainty in the market. Market experts mentioned that BlackRock is presently even more cautious about its reputation and will only take action when the legal rules and market situation are completely favourable.

When Can We Expect the U.S. SEC to Approve the XRP ETF?

The XRP ETF approval process is intimately linked to the resolution of Ripple’s legal case with the SEC and a wider adoption in big investor demand. Industry experts indicate that an XRP ETF green light date could remain months away, leaning significantly on legal developments in 2025. Until then, news about the XRP ETF will probably focus on applications, SEC reviews, and smaller companies moving forward.

At present, investors excited about an XRP ETF will require further regulatory guidance and a stronger market need to motivate BlackRock and potentially others to do something.

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