- XRP ETF filings rise, mirroring Bitcoin’s ETF success and boosting institutional interest.
- The U.S. sovereign wealth fund may invest in Bitcoin, accelerating crypto adoption.
- BlackRock leads Bitcoin ETFs, helping SWFs view crypto as an inflation hedge.
The crypto market has entered a new phase as talks over sovereign wealth funds (SWFs) investing in digital assets intensify. With BlackRock at the forefront of Bitcoin ETFs and XRP filings picking up steam, many wonder if a U.S. sovereign wealth fund might spark further crypto adoption and expansion.
In late 2024, nine XRP ETF applications filed with the U.S. Securities and Exchange Commission (SEC) underscored rising institutional interest in the digital asset. Major asset managers such as Bitwise and WisdomTree filed early, with Grayscale and CoinShares following suit.
This surge in filings resembles the 2023 wave of Bitcoin ETF applications, which culminated in the SEC approving 11 Bitcoin spot ETFs in January 2024. As XRP tracks Bitcoin’s trajectory, market participants speculate that an approved XRP ETF might trigger similar shifts, unlocking fresh avenues for the cryptocurrency.
Related: Ripple’s XRP ETF Race Gains Traction With WisdomTree’s Filing
However, insider reports suggest the U.S. is set to launch a sovereign wealth fund that may include Bitcoin and other crypto assets. This move bodes well, as talks with SWFs about Bitcoin investments are progressing.
BlackRock’s CEO, Larry Fink, confirmed that his firm had engaged with SWFs about directing funds to Bitcoin, spurred by concerns over inflation and fiat currency devaluation. Fink suggested these investments might drive Bitcoin’s price to new heights, with forecasts reaching up to $700,000 per coin.
BlackRock’s ETF Leadership
BlackRock, having established itself as a leader in Bitcoin ETF offerings, is ready to integrate cryptocurrency into sovereign wealth fund holdings. The firm’s iShares Bitcoin Trust (IBIT) surpassed $60 billion in assets under management by January 2024, highlighting the rising institutional appetite for Bitcoin exposure.
Related: Grayscale Files for XRP Spot ETF: Will XRP Price Rally on the News?
Fink’s claim that Bitcoin can serve as a hedge against inflation and currency debasement resonated with institutional investors, and SWFs may adopt a similar view.
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