XRP Price Jumps 5.44% as BlackRock ETF Speculation Ignites New Buying Frenzy

The rally was largely fueled by speculation that BlackRock may soon file for an XRP-spot ETF—an event that could significantly reshape market sentiment and demand for Ripple's native token. By Lucas Nuzzi. Updated May 13, 2023.

The price of XRP, the cryptocurrency developed by Ripple, experienced a rally on Saturday, May 12, reaching as high as $2.48. The rally was largely fueled by speculation that BlackRock may soon file for an XRP-spot ETF.

What Happened: A leaked letter, posted by a crypto enthusiast on X (formerly Twitter), claimed that BlackRock (NYSE:BLK) had been in discussions with the U.S. Securities and Exchange Commission (SEC) about expanding its crypto ETF offerings.

The asset manager is reportedly in talks with the SEC Crypto Task Force to pave the way for an XRP ETF approval.

While BlackRock has yet to confirm an XRP spot ETF filing, the rumor was enough to ignite enthusiasm among traders, who have been anticipating BlackRock’s entry into the XRP ETF market.

“BlackRock XRP ETF is coming soon!” the post read, highlighting the broader shift in the SEC’s stance toward digital asset exchange-traded products.

A leaked letter from BlackRock to the SEC, seen by an industry insider, confirms that the asset management giant is getting ready to launch several new cryptocurrency ETFs.

The letter was written by BlackRock’s Global Head of iShares Product in January 2023 and mentions that the asset manager is in talks with the SEC Crypto Task Force to discuss the approval process.

It is also noted that BlackRock has already applied for the iShares Bitcoin Trust (IBIT) exchange-traded product, to which the SEC has been delaying a decision since 2021.

The asset management giant is also said to be preparing to apply for the iShares Ethereum Trust.

The letter concludes by stating that BlackRock is committed to providing investors with innovative and diversified investment solutions in the rapidly evolving digital asset market.

It is also worth noting that BlackRock has previously disclosed investing in BTC through private equity vehicles in 2020.

Later, in August 2023, BlackRock surprised the market with a direct investment of $150 million in FTX Parent "CC's" $680 million Series E round.

The iShares Bitcoin Trust (IBIT) has attracted over $44 billion in net inflows this year alone, highlighting the strong institutional demand for cryptocurrencies.

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Why It’s Important: Speculation about BlackRock filing for an XRP-spot ETF has been swirling for some time now.

Earlier this year, the SEC rejected an application by Invesco (NYSE:IVZ) and Baltimore-based asset manager State Street (NYSE:STT) to launch a bitcoin ETF.

Later, in March, the SEC instituted proceedings to stop the pending applications by WisdomTree (NYSE:WTXH) and Krypto (CRYPTO:KTO) for bitcoin ETFs.

The regulator also sued cryptocurrency exchange Coinbase (NASDAQ:COIN) and stippled several other crypto firms.

However, recent developments suggest a shift in the SEC’s stance.

Last month, the SEC approved the first two bitcoin futures ETFs from ProShares (NYSE:ESGPT) and State Street.

Moreover, reports indicate that BlackRock is nearing the launch of its own bitcoin ETF, potentially signaling further institutional interest in cryptocurrencies.

The prospect of BlackRock filing for an XRP-spot ETF has generated significant buzz among crypto enthusiasts.

If approved, this would be a groundbreaking moment for the crypto industry, paving the width for more accessible and diversified investment products.

An XRP-spot ETF would allow investors to gain exposure to the price movements of XRP in a convenient and regulated manner, which could drastically increase demand for the token and propel it to new highs.

It is important to note that despite the rumors and speculations, neither BlackRock nor the SEC has officially confirmed any plans for an XRP-spot ETF at the time of writing.

However, the recent developments suggest that the asset management giant and the regulator are actively engaged in discussions about expanding crypto ETF offerings in the U.S.

As the SEC continues to process a backlog of bitcoin ETF applications, any new development in this domain could also have implications for XRP-spot ETF filing.

What Next: Analysts at Technical Analysis Insight observed that XRP is currently testing the $2.475-$2.50 zone, a key level to watch.

If the price can sustain above this range and close a daily candle above it, it will likely unlock further upside towards the $2.75-$2.80 zone.

However, profit-taking activity may limit any major gains.

“We’ll need to see some good volume and a strong daily candle close above the $2.475-$2.50 zone to unlock further upside. From here, we can expect a move towards the $2.75-$2.80 zone, and potentially even higher if the bulls maintain control,” the analysts stated.

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