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Jimmy Aki
Author
Jimmy Aki
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Key Takeaways:
- A major asset manager plans ETF filings centered on select crypto tokens.
- Firms are expanding product lines as competition in digital assets grows.
- Regulatory outcomes shape filing timing and investor trust.
- Broader crypto investment options may soon emerge.
On March 14, Nate Geraci, President of The ETF Store, stated that BlackRock, the world’s largest asset manager, is expected to file for Solana and XRP ETFs to stay competitive against other firms launching similar products.
He noted that Solana and XRP rank among the top five non-stablecoin cryptocurrencies, positioning them as strong candidates for ETF offerings.
Given BlackRock’s competitive nature, Geraci believes the firm won’t allow rivals to launch these ETFs without responding.
XRP ETF Filing Likely Hinges on Ripple’s Legal Outcome
In a recent post, Nate Geraci, President of The ETF Store, emphasized that while Solana and XRP ETFs are likely to materialize, their timelines differ.
He noted that a Solana ETF could be filed at any moment, whereas an XRP ETF would likely come only after Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC).
The SEC initiated a lawsuit against Ripple in December 2020, alleging that its sale of XRP constituted unregistered securities transactions.
This prolonged legal dispute has impacted XRP’s price and limited its adoption within the U.S. financial ecosystem.
Some industry analysts suggest that a shift in U.S. leadership could bring more crypto-friendly regulations, which may indirectly affect XRP’s regulatory status.
Recent SEC actions, including case dismissals, indicate a possible softening stance on cryptocurrency regulation, which could impact pending ETF applications.
The agency recently dismissed its lawsuit against Coinbase, which accused the exchange of operating as an unregistered securities platform.
In another move, Uniswap Labs revealed that the regulator closed its investigation without filing charges.
With the SEC winding down multiple cases, speculation is growing that Ripple could be next.
On March 12, crypto journalist Eleanor Terrett reported that the legal proceedings between Ripple and the SEC are nearing completion.
She indicated that negotiations had been delayed due to Ripple’s efforts to secure better terms concerning a previous court ruling that imposed a $125 million fine and restricted XRP sales to institutional investors.
Should this matter be resolved soon, industry experts, including Geraci, believe BlackRock will proceed with filings for Solana and XRP ETFs.
Competition Heats Up for Solana and XRP ETFs
Several asset managers have already submitted applications or are preparing to launch Solana and XRP ETFs, intensifying competition in the market.
In June 2024, 21Shares filed an S-1 form with the SEC to introduce a spot Solana ETF in the United States. Around the same time, VanEck also applied for a Solana ETF, aiming to expose investors to Solana’s price movements.
More recently, Franklin Templeton applied for approval to list a Solana ETF via the Chicago Board Options BZX Exchange.
Interest in XRP ETFs has also surged. In October 2024, Bitwise submitted a registration statement for a spot XRP ETF, offering direct exposure to Ripple’s native token.
Towards the end of the year, 21Shares and WisdomTree followed suit, filing for their own XRP ETFs in November and December, respectively.
The competition intensified on January 17, 2025, when ProShares joined the race by submitting applications for multiple XRP investment products, including the ProShares XRP ETF.
Geraci anticipates that BlackRock will enter the competition for Solana and XRP ETFs to maintain its market position.
BlackRock Projected to File for Crypto Index ETFs
Geraci’s projections extend beyond individual crypto ETFs. He believes BlackRock will soon file for crypto index ETFs, funds designed to track the performance of a diversified basket of cryptocurrencies.
Crypto index ETFs operate like traditional stock market indices, bundling multiple digital assets into a single investment product—an approach BlackRock may adopt as it expands its crypto offerings.
A major factor that could be driving BlackRock’s interest in crypto index ETFs is the recent outflow from Bitcoin ETFs.
As one of the key players in the Bitcoin ETF market, BlackRock has witnessed major capital flight from these investment products.
On February 25, the U.S. spot Bitcoin ETF market saw net outflows totaling $937 million, pushing weekly losses to nearly $1.5 billion, one of the largest withdrawals since their launch.
This trend continues in March. According to data from Farside, Bitcoin ETF outflows have already exceeded $1.4 billion this month, signaling growing uncertainty among investors.
This decline in Bitcoin ETF inflows may push asset managers like BlackRock to explore alternative crypto investment products, including XRP ETFs.
Charting a New Course in Crypto
As BlackRock prepares to expand its suite of offerings with crypto ETFs, the investment terrain is undergoing a quiet yet impactful shift.
The entry of Solana and XRP funds signals a potential realignment in how digital assets are perceived by major market players.
This development invites investors to observe the evolving legal context and its potential to reshape market dynamics.
In doing so, one may find opportunities to recalibrate risk exposure while embracing fresh market data.
The current momentum offers a chance to blend time-tested principles with new market insights for a more informed investment approach.
Frequently Asked Questions (FAQs)
BlackRock’s ETF filing could reshape crypto competition. The step may drive others to broaden their offerings and adjust strategies. This dynamic might lead to diverse digital products and shifts in investor focus.
Legal proceedings impact filing schedules. Uncertainties and court decisions shape how quickly asset managers launch crypto products. The outcome can adjust market readiness and investor trust in digital assets.
New crypto products could follow as asset managers diversify offerings. Market trends may evolve with a blend of traditional investment practices and modern digital asset strategies, altering investor behavior.
