BlackRock Delays XRP ETF Plans, RLUSD Approval Sparks New Speculations

The post BlackRock Delays XRP ETF Plans, RLUSD Approval Sparks New Speculations appeared first on Coinpedia Fintech News

Recent developments like XRP ETF filings, the announcement of a new SEC Chair, and the news of RLUSD stablecoin have further fueled XRP ETF launch speculations. But surprisingly, BlackRock has revealed no recent plans to file an ETF application for XRP or any other altcoins.

This has sparked speculations in the crypto community, as BlackRock was the driving force behind the success of spot Bitcoin and Ethereum ETF approvals. Over the past few months, several XRP enthusiasts were anticipating an XRP ETF filing from BlackRock. It all started after a fake XRP ETF filing from the company was filed on the State of Delaware website last year. At that time, the price of XRP soared by over 15%. 

Focus on Bitcoin, Ether ETFs

However, BlackRock quickly denied the report, emphasizing that the filing was fake. Jay Jacobs, head of BlackRock’s ETF department, turned down the rumors surrounding the company’s plan to file an XRP ETF application. He noted that even Bitcoin and Ethereum ETFs have only reached a few people yet, and the company will focus on expanding the coverage of these two types of ETFs currently.

Jacobs pointed out that only a small fraction of BlackRock’s clients currently own shares of iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA). He emphasized the need to widen their accessibility to a wider range of clients, stressing that there are no immediate plans to introduce new ETFs tied to altcoins like XRP. Bloomberg’s ETF Analyst Eric Balchunas shared Jacob’s comment on X earlier this week. 

“We’re really just at the tip of the iceberg with Bitcoin and especially ethereum. Just a tiny fraction of our clients own ($IBIT and $ETHA) so that’s what we’re focused on (vs launching new alt coin ETFs)” – Jay Jacobs of BlackRock at ETFs in Depth.

— Eric Balchunas (@EricBalchunas) December 12, 2024

Notably, Bitwise, Canary Capital, 21Shares, and WisdomTree filed applications for XRP ETF, with expectations of approval by the end of 2025.

The comment from BlackRock comes after rumors of an imminent XRP ETF amid recent positive developments in the crypto industry. While BlackRock has decided to delay further Crypto ETFs, however, Ripple CEO Brad Garlinghouse and ETF Store president Nate Geraci are bullish on the launch.

A Good Decision?

Also, some investors have backed BlackRock’s decision and noted that a step-by-step approach is better than launching a new ETF toon early, which could only worsen the volatility.

Moreover, Grayscale XRP Trust has recorded a robust 300% return since May. A well-known crypto market figure Ben Armstrong, known as “The BitBoy,” asserted that a robust return is a “good sign” of a potential XRP ETF launch in the US soon.

RLUSD News Spikes Speculations 

The recent approval of Ripple’s stablecoin RLUSD by NYDFS sparked further speculation on an XRP exchange-traded fund as it will help create a regulated market for XRP, which could also trigger a rally in XRP.