Will BlackRock apply for altcoins like XRP and Solana as the next step in its plans for a spot ETF?

With Bitcoin and Ethereum spot ETFs officially entering the trading market, the market has begun to heatedly discuss whether asset management giant BlackRock will set its sights on other cryptocurrencies such as Solana and XRP to explore the possibility of launching more spot ETFs. This speculation not only affects the nerves of investors, but may also indicate new trends in the cryptocurrency market.

Considering BlackRock’s important position in the global financial sector, any of their decisions may trigger a chain reaction that affects the dynamics of the entire cryptocurrency market. Therefore, whether BlackRock will apply for spot ETFs for altcoins such as Solana and XRP has become a high-profile topic.

BlackRock’s stance on altcoin ETFs

Although spot ETFs for Bitcoin and Ethereum have been successfully launched, BlackRock does not appear to be planning to expand to other cryptocurrencies anytime soon. Robert Mitchnick, BlackRock’s head of digital assets, made it clear that the company has “little to no interest” in cryptocurrencies beyond Bitcoin and Ethereum. This statement almost rules out the possibility of BlackRock applying for spot ETFs for altcoins such as Solana and XRP in the short term.

In addition, American journalist Charles Gasparino also mentioned in an interview that BlackRock CEO Larry Fink has not shown interest in launching an XRP spot ETF. Although Larry Fink’s answer was vague, Gasparino later clarified, saying that Fink lacked in-depth knowledge of XRP and therefore could not discuss BlackRock’s potential plans to launch an XRP ETF in detail.

While BlackRock is wary of altcoin ETFs, other fund issuers like VaEck and 21Shares see potential in altcoins like Solana. They have applied to launch the first Solana spot ETFs in the United States. Franklin Templeton has also expressed strong interest in Solana, predicting that it could soon become the third-largest cryptocurrency by market capitalization. However, it remains to be seen whether the asset manager will ultimately file for a Solana spot ETF.

At the same time, Brian Kelly, founder of digital asset investment company BKCM, also mentioned that Solana, as one of the "Big Three" of this cycle, is as famous as Bitcoin and Ethereum, and is likely to become the next cryptocurrency to launch its own exclusive ETF. .

Possibility of adoption of Spot XRP ETF

Although no asset management company has yet submitted an application for a spot XRP ETF in the United States, the industry generally expects that this will happen sooner or later. Brad Garlinghouse, CEO of Ripple, said at the 2024 Bitcoin Conference that the emergence of spot XRP ETF is a general trend and almost inevitable.

However, not all asset managers are positive about launching a spot XRP ETF. Previously, VanEck hinted that they have no plans to apply for a spot XRP ETF for the time being. Matthew Sigel, the company’s head of digital asset research, explained why they chose to apply for the spot Solana ETF, noting that Solana, like Ethereum, is highly decentralized, with no single entity controlling more than 20% of the token’s circulating supply. , and no one can stop the operation of the blockchain alone.

In contrast, the situation with XRP is different. Since the company Ripple holds a large supply of XRP tokens, this raises questions about the degree of decentralization of XRP. In addition, the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple has also cast a shadow over any possible spot XRP ETF applications, and has become an important factor hindering spot XRP ETF applications.

In short, although the launch of the spot XRP ETF is seen by the industry as a matter of time, it currently appears that the process may be slower than expected due to controversy over the degree of decentralization and regulatory challenges. The market will continue to pay attention to the progress of the legal dispute between Ripple and the SEC, as well as the changing attitude of asset management companies towards the XRP ETF.

Conclusion:

With the successful listing of Bitcoin and Ethereum spot ETFs, the market is full of expectations for the prospects of other altcoin cryptocurrency ETFs. But even if the altcoin market is active, it will still take time for mainstream finance to accept them. At the same time, although cryptocurrencies such as Solana and XRP have shown potential, their challenges in decentralization and regulatory compliance indicate that the road to spot ETFs will not be smooth sailing.

Although Ripple's legal dispute with the SEC has made the launch of spot XRP ETFs face a lot of uncertainty, the innovation and adaptability of the cryptocurrency market indicates that as time goes by and conditions mature, more types of cryptocurrency ETFs will gradually become a reality.

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