Summary
⚈ BlackRock denies involvement with XRP, citing ongoing legal issues with the SEC and confirming that a prior XRP Trust filing was fake.
⚈ No official XRP ETF filing exists, and BlackRock remains focused on Bitcoin and Ethereum until regulatory clarity around XRP improves.
Recently, speculation has grown over whether BlackRock (NYSE: BLK) is preparing to launch a spot XRP exchange-traded fund (ETF).
Rumors intensified on May 9 after reports surfaced that the world’s largest investment manager met with the Securities and Exchange Commission (SEC), specifically its crypto task force, to discuss ETF approval standards.
According to a shared letter, BlackRock intended to explore more crypto spot ETFs. The discussion included approval frameworks under Section 6(b) of the Exchange Act and potential interim structures for ETP issuers.
Despite this, there is no official application for a BlackRock XRP ETF, and the SEC has not approved any such product.
So far, BlackRock has focused on Bitcoin (BTC) and Ethereum (ETH) ETFs, both of which were approved earlier in 2024. Late last year, BlackRock’s ETF head, Jay Jacobs, stated that the company would continue prioritizing these two cryptocurrencies, with no immediate plans to expand into altcoins such as XRP.
Why BlackRock is ‘avoiding’ XRP ETF
The lack of a filing has raised questions since XRP is the fourth-largest cryptocurrency by market capitalization. Despite XRP’s potential and BlackRock’s financial strength, the firm has not applied to a spot XRP ETF.
A likely reason is the ongoing legal uncertainty surrounding XRP. The SEC’s long-running case against Ripple continues, although recent developments suggest progress, including a proposal to lift the ban on institutional XRP sales and reduce Ripple’s penalty.
Still, BlackRock is unlikely to wade into legally unclear territory without a final resolution.
The firm has also denied any connection to XRP or Ripple. BlackRock confirmed that the viral “XRP Trust” filing from November 2023 was fake.
Some industry observers believe that BlackRock might revisit the idea if Ripple secures a full legal settlement and the regulatory landscape becomes clearer.
XRP price analysis
At press time, XRP was trading at $2.54, down about 2% over the past 24 hours but up more than 20% for the week.
If BlackRock eventually files for and receives approval for a spot XRP ETF, the move could trigger significant institutional inflows and potentially push XRP to new highs.
Featured image via Shutterstock
