XRP ETF Launch: Will BlackRock Back Ripple Amid Legal Hurdles?

XRP ETF speculation is stirring the crypto world as major financial firms explore new opportunities in digital asset investments. Among these, BlackRock has captured headlines with rumors of a possible Ripple-backed exchange-traded fund. However, ongoing legal battles surrounding XRP could complicate any such move.

Recent reports have reignited possibilities of an XRP ETF, especially with BlackRock already offering spot Bitcoin and Ethereum ETFs. While this isn’t an official confirmation, the idea has attracted attention given Ripple Labs’ high-profile court cases with the U.S. Securities and Exchange Commission (SEC).

The XRP community has long anticipated the introduction of an ETF that tracks XRP’s performance. Supporters argue that XRP offers the framework and liquidity needed for institutional-grade investment products. However, the lack of regulatory clarity continues to throw cold water on these ambitions.

BlackRock, a titan in asset management, has not submitted a formal application to the SEC for an XRP ETF. That said, the firm’s growing involvement in crypto gives investors hope. Speculation about BlackRock’s intention springs largely from its strategic activity in the digital asset sector, which includes several ETF launches over the past year targeting mainstream cryptocurrencies like Bitcoin and Ethereum.

Still, regulatory roadblocks remain a tough barrier. The SEC’s ongoing lawsuit against Ripple could significantly impact XRP’s market standing. Though Ripple achieved a partial legal win in 2023, the case remains unresolved. Until XRP receives complete regulatory clearance, chances for a U.S.-based XRP ETF remain slim.

In parallel, the broader Bitcoin price forecast adds another layer of interest. Experts suggest BTC is aiming for a breakout towards $90,000, signaling bullish momentum across the digital market. Such a surge could lift XRP and other altcoins as well, increasing pressure for clearer investment vehicles like ETFs.

Common investor sentiment is that if BlackRock throws weight behind an XRP ETF, it could deliver significant credibility to Ripple’s token. Institutional backing might help XRP overcome reputational and legal hurdles, opening the door for broader acceptance in regulated investment circles.

Despite the enthusiasm, it’s vital to note that no “XRP Trust” or similar fund has been formally announced by BlackRock. Some in the market have pointed to obscure filings and ticker names cited online, but these lack corroborated evidence. XRP’s price has reacted to these speculations with minor fluctuations but remains mostly range-bound.

Ripple Labs has continued to advocate for XRP adoption worldwide, particularly in cross-border payment solutions. But the coin’s ETF future still hinges on clearer results from its battle with the SEC. Until that’s resolved, large issuers like BlackRock may stay cautious—not wanting to launch products that could be struck down by regulators.

Some analysts suggest that international markets may offer XRP ETF opportunities before the U.S. does. Countries with forward-thinking crypto laws, such as Canada or Switzerland, could become early adopters. That could apply pressure on U.S. regulators to reconsider their stance down the line.

Related: Expert Advice: Sell XRP If You’re Confused

For now, XRP investors will need to wait and watch. The roadmap to an ETF backed by giants like BlackRock still seems distant. But continued legal progress and favorable market trends could slowly turn the tide, setting XRP up for a more institutional future.