ETF expert Nate Geraci predicts BlackRock could file for an XRP ETF once the Ripple lawsuit appeal is officially dismissed. He believes the world’s largest asset manager is likely to expand its crypto ETF offerings beyond Bitcoin and Ethereum as legal clarity emerges.
In a recent X post, Nate Geraci, president of The ETF Store, believes BlackRock will file for an XRP ETF through its iShares platform. He shared that the timing is ideal, suggesting the asset manager had likely been waiting for legal clarity before making a move.
However, Bloomberg ETF analyst Eric Balchunas pushed back, saying he doubts such a filing is imminent. “I think they’re happy with the two,” Balchunas remarked. He cited diminishing returns beyond Bitcoin and Ethereum, though he admitted it was more of a gut feeling than hard evidence.
DC Investor also contributed to its possibility, noting that issuers may avoid launching such a product to prevent retail investors from suffering losses on assets “mostly vapor,” where corporations could hold significant amounts to sell.
Ripple and the SEC had filed a joint dismissal of all remaining appeals, formally concluding a case that began in December 2020. The resolution affirms that XRP is not considered a security in retail transactions.
Without the overhang of litigation, U.S. exchanges and financial products, including ETFs, have far greater flexibility to list and integrate XRP. Ripple is also now free to accelerate its business plans. Ripple announced plans to acquire Rail for $200 million just before the dismissal filing. This move is aimed at boosting stablecoin infrastructure for its RLUSD project.
The market has responded swiftly to the lawsuit’s conclusion. According to CoinMarketCap data, the XRP price has climbed over 13.27% in the last 24 hours. This greatly exceeds the 3.75% gain in the overall cryptocurrency market. South Korean exchanges reported a startling 1,211% increase in XRP volume as trading activity exploded.
Bullish derivatives positioning fuelled technical momentum, as traders on Deribit bought over 100,000 call and put contracts at $3.20 and $3.10 strike prices, totalling $416,000 in premiums. These positions imply that increased volatility is anticipated in the upcoming weeks.
With net inflows of over $42 million, XRP momentarily surged above $3.30 and reached $3.32 during spot trading. As a result, its market value increased to $22 billion.
Notably, after the news, Polymarket’s XRP ETF approval odds soared back to 88%. This comes after it dipped to around 65% after SEC Commissioner Caroline Crenshaw voted against specific crypto-related measures. However, analysts like Balchunas dismissed the concern. He pointed out that Crenshaw routinely opposes all crypto ETFs and is often outvoted.
Advocates believe that a BlackRock XRP ETF makes strategic sense. Expanding beyond Bitcoin and Ethereum would diversify BlackRock’s crypto offerings. They would also be in a better position to meet the requirements of institutions seeking exposure to various digital assets. With the Ripple lawsuit now resolved, the conditions for an XRP ETF filing have become stronger.
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