Can BlackRock’s XRP ETF Application Secure US SEC Approval?

• BlackRock’s XRP ETF filing could benefit from ongoing SEC delays, giving them more time to gain a competitive advantage.
• Franklin Templeton, with $1.5 trillion in assets, has filed for an XRP ETF despite SEC delays and regulatory uncertainty.
• XRP price surged 5%, with a 2.28% increase in open interest and over $7 million in short liquidations amid ETF developments.

A delay in the SEC’s response on several crypto ETFs may be the window of opportunity that BlackRock could use to file an XRP ETF. Franklin Templeton already setting forth in the race has people speculating that this could potentially be an XRP-centered financial product that we may have coming soon.

SEC Delays ETF Approvals for Ripple and Other Cryptocurrencies

On March 11, 2025, the U.S. Securities and Exchange Commission (SEC) delayed its decision to approve several exchange-traded funds (ETFs) involving cryptocurrencies. This included the failure of the Canary Spot XRP ETF and the Grayscale ETF filing to get approved. Other cryptocurrencies, including Solana, also saw similar delays for ETFs from Canary, VanEck, and other asset managers. This has also sparked conversation in the crypto community, particularly among XRP supporters.

The delays have raised concerns about the timeline for regulatory clarity regarding cryptocurrency-focused financial products. XRP, which is a digital asset created by Ripple, has long been the subject of scrutiny by the SEC due to its ongoing legal battle. Well-known lawyer and advocate for XRP, Bill Morgan has been speculating that these delays might not be that negative after all. 

According to Morgan, the delays could offer BlackRock and other large asset managers more time to potentially file their own XRP ETFs, which could provide them with a competitive edge in the market. While BlackRock has not yet hinted at such a move, the possibility of a future filing remains a topic of interest for many market analysts.

Franklin Templeton Joins the XRP ETF Race

In a notable development, Franklin Templeton, one of the world’s largest asset managers with $1.5 trillion in assets, applied for an XRP ETF. Despite the ongoing delays by the SEC in approving similar filings, Franklin Templeton has moved forward with its application, signaling its intention to introduce an XRP-focused financial product to the market. This filing is significant as it marks another step in the evolution of crypto ETFs, which have been slowly gaining traction within the traditional finance sector.

The filing by Franklin Templeton has also provided some insight into how large financial institutions plan to handle the security of digital assets. The application notes that the Coinbase Custody Trust Company would serve as the custodian for the XRP holdings in the fund, ensuring secure storage. This step addresses one of the key concerns for institutional investors: how to safely store digital assets like XRP. The move follows a broader trend of financial institutions looking to integrate cryptocurrency into their portfolios despite regulatory uncertainty surrounding the market.

BlackRock’s Potential Strategy in the XRP ETF Market

As the largest asset manager in the world, BlackRock’s involvement in the crypto ETF market is a topic of significant interest. Although the firm has not yet filed for an XRP ETF, analysts speculate that BlackRock may see the current delays in ETF approvals as an opportunity. The delays could allow BlackRock more time to file an XRP-based ETF and prepare for a competitive launch.

The possibility of BlackRock entering the XRP ETF space is seen as a potential game-changer. The firm’s extensive resources and expertise in the ETF market could give it a unique advantage in navigating the regulatory complexities surrounding crypto products. 

While BlackRock has yet to confirm any plans to file an XRP ETF, the company’s long-standing interest in cryptocurrency and its capacity to manage large-scale financial products make it a key player to watch in the future. Many market analysts are hopeful that BlackRock will eventually file an XRP ETF, particularly after the resolution of the ongoing legal issues surrounding Ripple.

XRP Price Action and Market Outlook

XRP’s price saw a 5% increase following recent developments related to ETF filings and the broader crypto market environment. This uptick comes amid a broader surge in open interest for XRP, which rose by 2.28%, reaching a total of $3 billion. Additionally, 24-hour liquidations surged to $13.85 million, with more than $7 million in short liquidations, signaling a shift in market sentiment.

XRP has been highlighted as one of the strongest performers in the cryptocurrency market despite the ongoing downturn. Mikybull Crypto, a well-known analyst, pointed to a daily bullish divergence in XRP’s price chart, indicating potential upward momentum. This suggests that, as the broader crypto market begins to recover, XRP could see a significant rally, particularly with the anticipation of more regulatory clarity surrounding its ETF potential. Market analysts are closely watching XRP as it continues to react to both market and regulatory developments.

Source: X