After the Bitcoin and Ethereum spot ETFs received approval from the SEC in 2024, ETF applications were also made for many altcoins.
Among these altcoins, major altcoins such as Solana (SOL) and XRP are estimated to have a higher chance of approval, while the end of the case between SEC and Ripple has increased speculations regarding the XRP ETF.
While giant names such as Grayscale, WisdomTree and Franklin Templeton have applied for an XRP ETF, the world’s largest asset management company BlackRock is taking a cautious approach to XRP.
While it is expected that BlackRock, which has not applied for an ETF for any altcoin other than Bitcoin and Ethereum, will specifically apply for an XRP ETF, an analyst examined why BlackRock has not applied for an XRP ETF.
According to the analyst who goes by the pseudonym All Things XRP, BlackRock’s hesitation to launch an XRP ETF is due to multiple factors, including regulatory concerns, market dynamics, and strategic considerations.
According to the analyst, the reason why BlackRock is staying away from XRP for now is because they want to focus only on Bitcoin and Ethereum.
BlackRock, which has had great success with its BTC and ETH ETFs, is cautious about other altcoins to reduce possible risks to its success.
Another reason that keeps BlackRock away from XRP is regulatory concerns. According to the analyst, although both Ripple and the SEC have withdrawn their objections in the XRP case, the case is not officially over and the security risk still remains.
This uncertainty may be preventing the investment giant from filing for an XRP ETF.
The analyst cited the last reason as BlackRock’s preference for being strategic with XRP. According to the analyst, BlackRock is taking a cautious approach by waiting for competitors such as Grayscale and Franklin Templeton to launch XRP ETFs. These companies will be the first to face potential regulatory hurdles, which will then pave the way for BlackRock to easily enter the ETF space.
According to the analyst, this approach will also allow BlackRock to gauge institutional appetite for XRP and adjust risk management.
Noting that BlackRock is known for launching products at the right time, when the odds are in their favor, the analyst argued that BlackRock could launch an XRP ETF after overcoming all possible hurdles.
*This is not investment advice.
