According to Block Beats, BlackRock is preparing to file an application with the U.S. Securities and Exchange Commission (SEC) for an XRP exchange-traded fund (ETF), contingent upon the resolution of Ripple’s ongoing appeal case. Nate Geraci, president of The ETF Store, revealed that BlackRock aims to diversify its cryptocurrency ETF portfolio beyond the current focus on Bitcoin and Ethereum. Geraci criticized the prevailing emphasis on these two assets, arguing that it implies other cryptocurrencies lack value.
Senior ETF analyst at Bloomberg, Eric Balchunas, commented on the development by suggesting that XRP ETFs might attract less investor interest compared to Bitcoin and Ethereum-based products. He further cautioned that anticipated returns in the crypto ETF market could decline as new offerings enter the space.
This initiative comes amidst Ripple’s unresolved legal battle against the SEC. Upon a favorable outcome, BlackRock intends to integrate XRP into its suite of cryptocurrency ETFs. Such a move signals a potentially significant shift within the crypto market, as BlackRock’s endorsement through an XRP ETF application could enhance the digital asset’s acceptance and investor confidence.
Balchunas also noted that Bitcoin and Ethereum are likely to maintain their dominance within the ETF landscape, and the introduction of additional ETFs may moderate overall profit expectations. This highlights investor preference for these established cryptocurrencies, while XRP’s popularity still faces certain reservations.
Overall, BlackRock’s planned entry into the XRP ETF market could expand diversification opportunities for crypto investors and contribute to stabilizing XRP’s market value following the resolution of its legal challenges.
Source: binance
