BlackRock’s proposal for an XRP ETF has sparked discussions, concerns among experts, and optimism among investors.
BlackRock’s Objectives and Criticism of the ETF Proposal
BlackRock, managing over $11.6 trillion in assets, has expressed interest in launching an XRP ETF, joining nine other firms with similar proposals. Critics, such as Vandell Aljarrah, co-founder of Black Swan Capitalist, argue that the ETF could centralize control and limit the real utility of the token. He stated: "An XRP ETF restricts real utility." Directly holding XRP allows for remittances, staking, and smart contracts, whereas ETF investors gain only price exposure with no custody or transactional capabilities.
Market Optimism and Current State of XRP
Despite the criticism, market sentiment remains optimistic. Polymarket data shows a rise in the odds of approval for the XRP ETF to 81% by late 2025, up from 77%. Investors are split on approvals for July 2024, with 44% favoring that timeline. XRP is currently trading at $2.61, marking a 10.36% increase daily and a 21.20% increase over the past week.
Technical Analysis of XRP and Network Activity
From a technical standpoint, XRP has broken past a key resistance zone near $2.35–$2.40, flipping it into support. If bulls maintain control, the next logical target is $2.88. During the last week, Ripple has also shown strong network activity, processing over 4 million transactions in just three days, reinforcing its utility in transactions and tokenization.
BlackRock’s XRP ETF proposal raises questions about the balance between institutional interests and the decentralized functions of cryptocurrency. This situation requires careful consideration from both investors and informed users.
