Expert Says BlackRock Clearly Wants XRP ETF, But Don’t Celebrate Yet. Here’s why

Growing anticipation around a potential XRP exchange-traded fund (ETF) from BlackRock has prompted a strong response from industry expert Vandell Aljarrah. While the co-founder of Black Swan Capitalist acknowledged signs that the world’s largest asset manager is interested in pursuing such a product, he cautioned investors not to misinterpret what this might mean for the future of XRP and the broader crypto landscape. Aljarrah emphasized that BlackRock’s likely interest in an XRP ETF is not necessarily aligned with the ethos of decentralized finance or the asset’s intended use case. “This isn’t about democratizing access to XRP,” Aljarrah said in a recent statement. Instead, he characterized it as a strategic play for profit and control by institutional players. His remarks underscore a growing concern within the crypto community that major financial firms could co-opt digital assets in ways that strip them of their original functionality. BlackRock clearly wants an XRP ETF. But before you celebrate & assume it’s a win for crypto, you need to understand. This isn’t about democratizing access to XRP or unlocking utility for investors. It’s about control & profit. (FYI) ETFs can be subtly manipulated. When you… pic.twitter.com/hImPWfcjYt — Vandell | Black Swan Capitalist (@vandell33) May 12, 2025 ETF Exposure Could Undermine XRP’s Core Utilities According to Aljarrah, ETFs backed by XRP would limit investor access to the asset’s utility, reducing it to a mere instrument for price speculation. In his view, while Wall Street’s embrace of an ETF might lend legitimacy to XRP in financial circles, it would also mean that most retail investors would interact with the asset in a way that excludes its real-time settlement capabilities, liquidity provision , staking, and self-custodial benefits. He warned that an XRP ETF offers no utility, noting that the transition from direct ownership to institutional products shifts the balance of control. Aljarrah also expressed concern over how ETFs could be subtly manipulated, with institutional players holding the reins rather than individual investors. He said this potential shift in influence is a critical issue that the market must consider as demand for regulated crypto investment products grows. We are on twitter, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) July 15, 2023 Asset Managers Continue to Push XRP ETF Filings Despite these reservations, interest in XRP ETFs is accelerating across the industry. Since late 2024, several asset managers have submitted filings with the U.S. Securities and Exchange Commission (SEC), seeking approval for spot and futures-based XRP ETFs. Among the firms involved are Bitwise, Grayscale, 21Shares, WisdomTree, and ProShares. The latter has already secured approval for three futures-based XRP ETFs, including one that provides inverse exposure at a factor of -2x. Grayscale, known for popularizing crypto trust products, manages over $16 million in assets through its XRP Trust and has filed to list the product in partnership with NYSE Arca. Similarly, MEMX, a U.S. stock exchange, has submitted a proposal to list an XRP ETF under the Commodity-Based Trust framework, mirroring approaches taken with Bitcoin and Ethereum funds. BlackRock Remains Quiet — For Now Although BlackRock has yet to formally submit an XRP ETF application, market analysts believe such a filing is inevitable. The firm has already seen immense success with its Bitcoin and Ethereum ETFs, which have collectively attracted over $43 billion in assets. One factor delaying BlackRock’s entrance could be the legal environment. Since the July 2023 court ruling that XRP itself is not a security, followed by the SEC’s decision to abandon its appeal and settle with Ripple, regulatory uncertainty has decreased. The SEC has opened a comment period for various ETF applications and launched a 240-day review timeline. According to prediction platform Polymarket, approval odds for at least one XRP ETF by 2025 now exceed 80%. In summary, while institutional demand for XRP ETFs appears to be gaining momentum and BlackRock’s interest seems evident, Aljarrah’s warning reminds investors to weigh the implications carefully. The potential arrival of an XRP ETF could change how the asset is accessed and controlled, benefiting large financial players more than the average user. Follow us on X , Facebook , Telegram , and Google News The post Expert Says BlackRock Clearly Wants XRP ETF, But Don’t Celebrate Yet. Here’s why appeared first on Times Tabloid .