Altcoins
Will BlackRock Move to Altcoins Like XRP and Solana for Spot ETFs?
With the Bitcoin Spot and Ethereum ETF is already in tradingThere have been discussions about whether or not fund issuers will apply for more crypto ETFs. Specifically, market experts have wondered whether BlackRock, the world’s largest asset managerwill file spot ETF applications for other altcoins like Solana and XRP.
BlackRock Unlikely to File Spot ETF Application for Solana and XRP
Black rock It is unlikely that it will file a spot ETF application for Solana and XRP in the near future. This is based on BlackRock’s head of digital assets, Robert Mitchnick, who declared that the asset manager sees “very little interest” in crypto beyond Bitcoin and Ethereum. This suggests that BlackRock will likely stick with its Spot Bitcoin and Ethereum ETFs rather than offering another crypto ETF.
Charles Gasparino, American journalist and chief correspondent for Fox Business, had also previously dismissed the possibility of BlackRock filing for an XRP Spot ETF. His statement came following an interview BlackRock CEO Larry had with Gasparino in which he sidestepped the question about the possibility Spot XRP ETF launched.
Fink’s evasive response led members of the XRP community to speculate that BlackRock might be considering an XRP ETF. However, Gasparino later clarified the situation and revealed that Fink lacked in-depth information on XRP, so he did not have an elaborate answer to Gasparino’s question about a possible BlackRock XRP ETF.
While BlackRock may not be interested in other altcoins, fund issuers like VaEck and 21Shares see potential in altcoins like Solana and have already applied Asset manager Franklin Templeton has also taken an interest in Solana, predicting that it will soon become the third-largest cryptocurrency by market capitalization. However, it remains to be seen whether the asset manager will eventually file for a Solana Spot ETF.
Other fund issuers should be interested in Solana sooner rather than later, given the explosive growth the crypto token has already seen during this bull run. Brian Kelly, founder of digital asset investment firm BKCM, previously mentioned that Solana will likely be the next to get its own ETF, given that it is part of the “big 3” this cycle alongside Bitcoin and Ethereum.
The possibility of a Spot XRP ETF
Although no asset manager has yet filed an application XRP Spot ETF In the US, this is expected to happen one day. Brad Garlinghouse, CEO of Ripple mentioned At the Consensus 2024 conference, it was only a matter of time before the market witnessed a Spot XRP ETF and that such a fund was “inevitable.”
However, a firm like VanEck has suggested that it may not be considering filing a Spot XRP ETF anytime soon. This comes after the firm’s head of digital asset research, Matthew Sigel’s explanation why they filed for a Solana Spot ETF and not another fund like a XRP Spot ETF. Sigel mentioned that Solana is just as decentralized as Ethereum, as no single entity controls more than 20% of the token’s circulating supply, and no one can unilaterally shut down the chain.
The same cannot be said for XRP, given the share of Ripple token supply holds. This could therefore call into question the decentralized nature of XRP. In the meantime, the US Securities and Exchange Commission (SEC) case against Ripple could pose another obstacle to any potential application for an XRP Spot ETF.
Featured image created with Dall.E, chart by Tradingview.com