Bitrabo Editorial
Following the launch of Spot Bitcoin and Ethereum ETFs, there are speculations on whether other cryptocurrencies will be considered for ETFs. There is a particular focus on whether BlackRock, the world’s largest asset manager, will move towards offering spot ETFs for altcoins like XRP and Solana.
BlackRock’s Reluctance Towards Spot ETFs for Solana and XRP
BlackRock is unlikely to venture into spot ETFs for Solana and XRP in the near future. Robert Mitchnick, the head of digital assets at BlackRock, indicated that there is limited interest in cryptocurrencies beyond Bitcoin and Ethereum within the company. Consequently, BlackRock is expected to continue focusing on their existing Spot Bitcoin and Ethereum ETFs rather than expanding to other crypto offerings.
Despite speculation within the XRP community regarding a potential XRP ETF by BlackRock, Charles Gasparino’s interview with BlackRock’s CEO Larry Fink revealed little inclination towards launching a Spot XRP ETF. Gasparino later clarified that Fink lacked sufficient knowledge about XRP to provide a comprehensive response regarding the possibility of a BlackRock XRP ETF.
While BlackRock seems uninterested in other alternative cryptocurrencies, companies like VanEck and 21Shares have shown interest in altcoins like Solana and have already applied to launch the first-ever Spot Solana ETFs in the US. Franklin Templeton has also shown interest in Solana’s potential, predicting it could become the third-largest cryptocurrency by market capitalization.
There is growing anticipation for Solana to receive its own ETF, with experts like Brian Kelly, founder of BKCM, suggesting that Solana could be the next in line for an ETF given its significant growth potential in the current market cycle.
Potential for a Spot XRP ETF
Although no asset manager has filed for a Spot XRP ETF in the US yet, there are expectations that it could materialize eventually. Ripple CEO Brad Garlinghouse has expressed confidence that a Spot XRP ETF is inevitable, emphasizing that it is only a matter of time before such a fund is introduced to the market.
On the contrary, firms like VanEck may not be considering a Spot XRP ETF in the near future. Their focus on launching a Spot Solana ETF over an XRP ETF is attributed to Solana’s decentralized nature, akin to Ethereum, which lacks central control over its circulating supply.
The substantial XRP supply held by Ripple and ongoing legal challenges such as the SEC case against Ripple pose significant hurdles towards a potential application for a Spot XRP ETF.