BlackRock, the $15 Trillion Giant, Declines to Launch XRP ETF: Insufficient Demand Turns Outlook Bearish

Stock News
Oct 06

According to Woofun AI, although seven spot XRP ETFs are already trading in the market, BlackRock (BLK.US), a financial giant with assets reaching $15 trillion, has never submitted a related application to the U.S. Securities and Exchange Commission. This absence has sparked questions about its strategic intentions.

Currently, these seven spot XRP ETFs have total assets under management of $1.77 billion. Well-known companies such as Franklin Templeton (BEN.US), Grayscale, 21Shares, and Bitwise have all participated in product development, indicating a certain level of market demand.

However, BlackRock has ignored this. According to the company, its primary criterion for launching a new fund is meeting client demand, and as things stand, there is not yet sufficient client demand to support the launch of a new spot XRP ETF. Woofun AI's compiled data shows that behind this decision lies a cautious assessment of expected capital inflows.

Although $1.77 billion sounds like a considerable figure, it appears insignificant compared with BlackRock's Bitcoin ETF—the iShares Bitcoin Trust (IBIT.US)—whose assets under management reach as high as $67 billion, with an expense ratio of 0.25%, a gain of 1.74% today, a current price of $0.83, and a share price of $48.56. The iShares Ethereum Trust (ETHA.US) also has assets under management of $10 billion, likewise far exceeding the combined assets of those seven XRP ETFs.

Just two years ago, before the launch of spot XRP ETFs, analysts expected inflows of up to $8 billion into the XRP market, but in reality only $1.77 billion was attracted—a figure that is only a small fraction of the forecast, indicating that analysts overestimated investor demand for XRP.

Currently, XRP is trading at $1.50, with a today's change of -0.62%, a range of $1.49 to $1.52, a two-week price range of $0.99 to $3.05, and trading volume of 1.5 billion shares. Unless a large amount of new capital flows in, it is difficult to see a significant rise in XRP's price. Judging from what BlackRock has revealed about client demand for XRP, this is unlikely to happen in the short term.

For this reason, I will not buy XRP at present. Although its market capitalization is large enough to warrant further attention, current demand is not sufficient. Before BlackRock starts buying XRP for its clients, I will continue to look for other better investment opportunities.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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