BlackRock Eyeing XRP ETF Post-Ripple SEC Settlement? Insider Weighs In

Wall Street's trillion-dollar gorilla might be ready to play.

As Ripple's legal saga with the SEC nears its endgame, whispers grow louder about BlackRock's next crypto move. Could an XRP ETF be the hedge fund's next power play?

The crypto market holds its breath.

Market analysts suggest the world's largest asset manager has been quietly positioning for this moment. 'The paperwork could drop within 48 hours of settlement,' claims one trading desk insider, speaking on condition of anonymity. 'They've got the template ready from their Bitcoin ETF rollout.'

XRP futures open interest spiked 37% last week as rumors circulated. Liquidity providers report unusual OTC activity - the kind that typically precedes institutional moves.

But skeptics warn: 'This is Wall Street's MO. Wait for regulatory clarity, then swoop in to monetize the infrastructure built by true believers.'

One thing's certain - if BlackRock files, the SEC's inbox will crash faster than a DeFi protocol under exploit.

BlackRock Might Make A Move

The end of the case immediately prompted discussion about whether BlackRock, Wall Street’s biggest asset manager, will launch a Spot XRP ETF. Geraci, president of The ETF Store, shared on X that he believes BlackRock may have been waiting for this moment before filing for an iShares XRP ETF. 

“Makes zero sense for them to ignore crypto assets beyond btc & eth,” he wrote. According to him, limiting exposure to just Bitcoin and ethereum would be like saying they’re the only assets that will ever matter. That stance is very questionable given the altcoin’s price performance since last year.

Given BlackRock’s success with its Spot Bitcoin and Spot Ethereum ETFs, the XRP ETF is the logical next step, as the third-largest cryptocurrency. If BlackRock were to launch an XRP ETF, it could be a game-changer for the token’s price performance. 

At the time of writing, BlackRock holds the largest share of assets in both Bitcoin and Ethereum ETFs in the US. The firm’s Spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), has dominated inflows since launch and is currently holding $86.53 billion in net assets. Furthermore, its iShares Ethereum Trust has quickly become the leader among Ethereum ETFs with $12.35 billion in net assets. 

ETF Odds Improve, But BlackRock Says Not Yet

Polymarket now puts the odds of an XRP ETF approval at 76%, although it reached as high as 88.7% on August 8. However, Bloomberg’s ETF analyst Eric Balchunas is leaning on the cautious side. In response to Nate Geraci’s post, Balchunas disagreed and noted that the firm is likely satisfied with its existing crypto offerings. He doesn’t expect one to be filed this year, but the longer-term outlook is harder to call.

It appears BlackRock is in no rush to expand its ETF lineup for now. A BlackRock spokesperson told The Block on Friday that the company currently has no plans for a spot XRP ETF, or one for Solana. However, that doesn’t mean the door is closed forever.

XRP’s price jumped more than 11% on the news of the settlement. Its price went from $3.04 and jumped to $3.36 in just a few hours after news of the settlement broke out. At the time of writing, the altcoin is trading at $3.32.