BlackRock, the world’s largest asset manager, has outlined key factors that could shape its decision to launch a spot XRP ETF.
The insights came from Robbie Mitchnick, the firm’s Head of Digital Assets, during an interview with ETF analyst Nate Geraci. In the interview, Geraci referenced his public prediction that BlackRock would file for a spot XRP ETF in the United States, given the success of its spot Bitcoin and Ethereum funds.
Despite acknowledging that BlackRock would not speak directly on specific coins like XRP, Geraci cleverly shifted the question toward the firm’s plans for future crypto-related ETFs.
Factors Influencing BlackRock’s Crypto ETF Launches
Responding, Michnick did not deny or confirm BlackRock’s immediate plans to join the race to launch an ETF focused on XRP. Instead, he outlines the framework that BlackRock uses when evaluating new cryptocurrency products.
He emphasized that any decision to expand its crypto-related products, including a potential XRP ETF, primarily hinges on client demand.
This would help the company determine whether its customers want exposure to the particular token through an ETF. It implies that without strong client demand, the company is unlikely to proceed with bringing the product to market.
According to Mitchnick, other factors also come into play during the evaluation of crypto-related ETF opportunities. These include fundamentals such as market capitalization, maturity, and liquidity of the underlying asset.
Additionally, BlackRock considers how a potential ETF would fit into broader client strategies before moving forward with the launch of a new product. According to Mitchnick, the evaluation is a continuous process, not a one-time assessment, indicating that BlackRock is open but cautious about further expansion of crypto ETFs.
Is XRP Next for a BlackRock ETF?
BlackRock has achieved significant success in the crypto ETF market. Its Bitcoin ETF has drawn $60.25 billion in inflows, and its Ethereum ETF attracted $13.35 billion in inflows.
Building on the success of these funds, attention has shifted to which token BlackRock might pursue next for an ETF. While the firm has not confirmed any plans for an XRP ETF filing, the asset is increasingly meeting its evaluation criteria.
XRP continues to rank as the third-largest non-stablecoin cryptocurrency, with a market capitalization of $165.08 billion. The regulatory cloud hanging over it has cleared with the conclusion of the SEC lawsuit.
Moreover, the strong debut of the REX-Osprey XRP ETF, which saw $37.5 million in trading volume on its first day, highlights the growing demand for such a product.
Currently, investors are awaiting the SEC’s decision on multiple XRP ETF proposals from asset managers such as 21Shares, Franklin Templeton, and Canary, among others.
From next month, the SEC must decide the fate of some of these funds, with speculation suggesting that they could follow the path of Bitcoin and Ethereum ETFs and secure approval.
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