May 16, 2025 03:35
As speculation grows around a potential BlackRock XRP ETF filing, industry expert Vandell Aljarrah suggests the asset manager clearly wants to enter the market.However, Aljarrah, who is the co-founder of Black Swan Capitalist, issued a warning to investors about this potential development. He suggested that the anticipated move is less about enhancing crypto adoption and more about profit and control by institutional players.BlackRock Wants an XRP ETF, But There's a CatchIn a recent post, Aljarrah stressed that investors should not automatically equate an XRP ETF with broader access to utility-driven crypto adoption. He argued that while the prospect of an ETF might appear to validate XRP in the eyes of Wall Street, it strips the asset of its inherent functionalities. When held in its native form, market participants can use XRP for real-time remittances, liquidity provisioning, staking, and self-custody. However, an ETF version offers exposure only to price movement, without granting access to these core utilities.Nonetheless, he is confident that BlackRock would express interest in an XRP ETF. Aljarrah further warned that institutions could subtly manipulate ETFs, suggesting that control over the asset changes significantly from individual investors to powerful financial institutions.Momentum Around XRP ETFs GrowsDespite these concerns, the momentum behind XRP ETF filings builds. Since October 2024, a growing number of asset managers have submitted applications to the U.S. Securities and Exchange Commission (SEC). Firms like Bitwise, Grayscale, WisdomTree, 21Shares, and ProShares have all entered the race to launch spot and futures-based XRP ETFs. At press time, multiple applications are under regulatory review. ProShares has secured approval for three futures-based XRP ETFs, including an inverse fund offering -2x exposure.Grayscale, a major player in the crypto investment space, currently manages over $16 million in assets for its XRP Trust. It has partnered with NYSE Arca to seek listing approval. Meanwhile, MEMX, a U.S.-based exchange, filed a proposal to list an XRP ETF similar to those for Bitcoin and Ethereum, under the Commodity-Based Trust framework.While BlackRock has not yet filed for an XRP ETF, market watchers believe it's only a matter of time. The asset management giant has focused on its highly successful Bitcoin and Ethereum ETFs, which collectively pulled in over $43 billion. Analysts suggest that BlackRock is waiting for optimal legal clarity and market readiness before making its move. Industry voices like Nate Geraci of ETFStore predict that BlackRock will not cede the altcoin ETF market to competitors like Bitwise and Grayscale for long.Regulatory Atmosphere Now Favorable Meanwhile, regulatory momentum has shifted in favor of these filings since the resolution of the Ripple-SEC lawsuit. The court ruled in July 2023 that XRP was in itself not a security. Following the SEC's decision to drop its appeal this year and settle with Ripple, institutional restrictions have eased. The SEC has since opened a public comment period for several filings and begun a 240-day review cycle, raising approval odds to over 80% for 2025, according to Polymarket.
World Crypto Global
