BlackRock’s XRP ETF Entry Is Inevitable, ETFStore President Says

• ETFStore President Nate Geraci believes BlackRock will eventually file for spot XRP and Solana ETFs. 
• He argues it makes “zero sense” for the firm to let competitors take the lead in these emerging crypto ETF markets. 
• Geraci views BlackRock’s current silence as a strategic pause, not a sign of disinterest.

Nate Geraci, President of ETFStore, has reignited speculation about BlackRock entering the XRP ETF space. In a tweet, Geraci stated that he fully expects BlackRock to file for spot Solana and XRP ETFs.

According to him, it would make “zero sense” for the world’s largest asset manager to let competitors dominate these fast-growing ETF categories without participating.

XRP ETF Race Already Crowded, But Missing a Giant

So far, 15 XRP ETF applications have been submitted to the U.S. Securities and Exchange Commission (SEC). This makes it the most actively pursued crypto ETF after Bitcoin and Ethereum. 

Asset managers such as Grayscale, Franklin Templeton, WisdomTree, and Bitwise have already joined the race. However, BlackRock, the dominant player in the Bitcoin and Ethereum ETF space, is yet to announce any plans for XRP.

Geraci sees this as a temporary delay rather than disinterest. “As the leader in both spot Bitcoin and Ethereum ETFs, it would make zero sense to cede other top crypto asset ETF categories to competitors,” he argued.

Related: 12 XRP ETF Proposals Now Before SEC; BlackRock and Vanguard Notably Absent

BlackRock’s Record with BTC and ETH ETFs Sets the Tone

BlackRock’s entrance into the Bitcoin ETF market in 2024 significantly shifted the landscape. Its iShares Bitcoin Trust has attracted over $49 billion in inflows, catapulting it to the top of global ETF charts. 

Its Ethereum ETF has similarly recorded $5.23 billion in inflows. In contrast, Fidelity, its closest rival, has seen just $11.5 billion and $1.6 billion in Bitcoin and Ethereum ETF inflows, respectively.

This performance is what XRP proponents are banking on. Many believe BlackRock’s involvement in the XRP space could propel the asset in the same way it did for Bitcoin, especially given the asset manager’s credibility and reach.

Why BlackRock May Be Waiting

While the community is eager, analysts like “SMQKE” believe BlackRock is waiting for more favorable conditions. These include:

• Regulatory Certainty: Despite a court ruling that XRP is not a security, the SEC has yet to issue a formal position. BlackRock may be waiting for a definitive classification.
  
• Market Maturity: XRP CME futures launched only in May with $19 million in day-one volume. Deeper derivatives markets may be needed before ETF approval.
  
• Liquidity Standards: ETF operations demand high liquidity to manage large inflows and redemptions. While XRP is deep, it may still fall short of BlackRock’s institutional standards, according to SMQKE.
  

Additionally, BlackRock may be closely observing how the SEC handles first-mover ETF applications from competitors.

Related: BlackRock’s IBIT Bitcoin ETF Crushes All Competitors In Daily U.S. Fund Inflows

Strategic Pause, Not a Retreat

Geraci believes BlackRock will eventually move to dominate the XRP and Solana ETF space just as it has with Bitcoin and Ethereum. While the firm remains silent for now, its track record and strategic approach suggest it’s carefully watching the regulatory and market landscape before entering.

In Geraci’s words, allowing competitors to establish dominance in top-tier crypto ETFs without a fight simply “makes zero sense.”

Ultimately, XRP enthusiasts are keeping a close eye on BlackRock. If and when it enters the XRP ETF race, it could mark a historic turning point for the asset’s institutional adoption and long-term valuation.