May 29, 2024
Anticipation Grows for Ripple's XRP ETF with BlackRock and Grayscale Involvement
Altcoins News

Anticipation Grows for Ripple’s XRP ETF with BlackRock and Grayscale Involvement

The imminent release of a Ripple (XRP) exchange-traded fund (ETF) is generating enthusiasm within the cryptocurrency market. Recent reports suggest that industry giants such as BlackRock (BLK: NYSE) and Grayscale are poised to spearhead the XRP ETF initiative, potentially submitting an application as early as April 2024.

In a January 6 YouTube video, crypto influencer Ben Armstrong, also known as Crypto BitBoy, revealed insider information suggesting that the XRP ETF application might coincide with the expected conclusion of the SEC v Ripple lawsuit in April 2024.

Amidst growing interest in spot Bitcoin ETFs, the Ripple community has responded positively to the prospect of an XRP ETF. Supporters argue that with the legal clarification of XRP as a non-security in a previous court ruling, the cryptocurrency deserves an ETF. Armstrong, echoing community sentiments, emphasized that this legal clarity increases the likelihood of an ETF launch.

Notably, BlackRock, the world’s largest asset manager, with over $8.5 trillion in Assets Under Management (AUM) and a significant role in advocating for a Bitcoin ETF, is anticipated to lead the launch of the XRP ETF, according to BitBoy.

In a notable development, Grayscale Investments confirmed on January 5 that it had reintroduced XRP as a component asset in its Grayscale Digital Large Cap (GDLC) Fund after a two-year hiatus prompted by the SEC’s lawsuit against Ripple. The asset manager allocated approximately $9.6 million (2.54% of its $378.5 million GDLC Fund) toward XRP.

Despite this move by Grayscale, XRP’s price has remained relatively stable, consolidating just above the $0.55 mark in the 48 hours following the news. The decision to reintroduce XRP to the fund, reversing the 2020 removal due to the SEC lawsuit, has sparked speculation about the potential for an ETF.

However, the realization of such an ETF remains uncertain. Despite an overall uptrend in cryptocurrency prices, XRP has struggled to sustain upward momentum. As of the latest CoinMarketCap data, XRP is trading at $0.558, reflecting a 1.26% increase in the past 24 hours. Over the weekly timeframe, the token has experienced an 8.59% decline, with a more substantial 12% decrease in the past 30 days.

Image by Miloslav Hamřík from Pixabay

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