XRP News Today: BlackRock May File XRP ETF After Ripple-SEC Legal Dismissal

The resolution of Ripple’s long-standing legal battle with the U.S. Securities and Exchange Commission (SEC) has intensified speculation that BlackRock, the world’s largest asset manager, may soon launch an iShares XRP ETF. On August 7, both Ripple and the SEC filed a joint dismissal of all remaining appeals, formally ending the case that began in December 2020. This legal development affirms that XRP is not a security in retail transactions, a key regulatory clarification that removes a major obstacle to institutional involvement in the token [1].

Industry experts, including Nate Geraci, president of The ETF Store, have suggested that BlackRock may be waiting for this outcome before filing for an XRP ETF. Geraci emphasized the strategic importance of expanding beyond Bitcoin and Ethereum, arguing that BlackRock would be overlooking potential value by limiting its crypto offerings to the two largest assets. He noted that the firm’s existing Bitcoin and Ethereum ETFs have demonstrated strong institutional demand, and an XRP ETF could further diversify its crypto product lineup [1].

Despite this optimism, not all analysts are convinced the filing is imminent. Eric Balchunas, a senior ETF analyst at Bloomberg, expressed skepticism, stating that BlackRock might prefer to focus its efforts on Bitcoin and Ethereum, which already form a significant part of its crypto strategy. He acknowledged that this view was more of a “gut feeling” than a firm conclusion [1].

The market has already responded positively to the legal resolution. XRP surged over 13.27% in 24 hours, significantly outpacing the broader cryptocurrency market’s 3.75% gain. On South Korean exchanges, XRP’s trading volume spiked by 1,211%, reflecting heightened international interest. Derivatives markets also showed increased activity, with traders on platforms like Deribit purchasing over 100,000 call and put contracts, signaling expectations of future volatility [1].

Spot markets saw notable inflows, with net inflows exceeding $42 million briefly pushing XRP above $3.30, reaching a peak of $3.32. This pushed XRP’s total market capitalization to $22 billion [1].

The legal certainty surrounding XRP has also influenced prediction markets. On Polymarket, the odds of an XRP ETF approval jumped to 88%, recovering from a recent low of around 65%. This surge reflects growing confidence in the token’s potential for ETF inclusion. Analysts believe that a BlackRock XRP ETF would provide strategic value by broadening institutional exposure to a crypto asset with unique use cases in cross-border payments and settlement efficiency [1].

Advocates argue that moving beyond Bitcoin and Ethereum to include XRP in institutional crypto exposure is part of a broader trend. While Bitcoin and Ethereum dominate market capitalization and institutional buying, other tokens like XRP offer distinct advantages in specific applications [1].

Ripple has already begun capitalizing on the legal clarity, announcing the $200 million acquisition of Rail, a Toronto-based stablecoin payments platform, to enhance infrastructure for its RLUSD stablecoin project. This move underscores Ripple’s ambition to expand its role in the crypto ecosystem [1].

Source: [1] BlackRock XRP ETF Speculation Heats Up After Ripple Lawsuit Resolution (https://www.cryptoninjas.net/news/blackrock-xrp-etf-speculation-heats-up-after-ripple-lawsuit-resolution/)