XRP ETF Expected to Launch in April 2024 —Blackrock, Grayscale Plans Revealed

Key Insights:

• US-based Asset Management firms are expected to submit filings for XRP ETF applications with the SEC, in April 2024, with a possible launch before the end of the year.
• Blackrock is set to spearhead the ETF campaign according to prominent Crypto Influencer Ben “BitBoy” Armstrong.
• Grayscale recently re-included XRP in its GDLC Fund, following the ruling by a US district Judge that XRP is “not a security”, further toked the ETF speculations.

The imminent launch of an exchange-traded fund (ETF) for Ripple (XRP), is generating excitement among crypto market participants. According to recent media claims, the likes of Blackrock (BLK: NYSE) and Grayscale are expected to lead the XRP ETF campaign, with an application expected as early as April 2024.

Influencer Ben “BitBoy” Armstrong Lifts Veil on XRP ETF Plans

Citing insider sources, Crypto influencer Ben Armstrong, better known as Crypto BitBoy, in a Jan 6 YouTube video, suggested that an XRP ETF application might be submitted in April 2024, potentially coinciding with the scheduled conclusion of the SEC v Ripple lawsuit.

In deference to the recent surge in interest in spot Bitcoin ETFs, the Ripple-backed cryptocurrency community members have responded enthusiastically about the possibility of an XRP ETF.

Advocates argue that, having received legal clarity as a non-security in a court ruling last year, XRP deserves a similar spot ETF. Armstrong, echoing sentiments within the community, emphasized that this legal clarity does increase the likelihood of an ETF launch.

Notably, Blackrock, the world’s largest asset manager with over 8.5 trillion Asset Under Management (AUM) and a key player in the push for a Bitcoin ETF, is expected to lead the launch of the XRP ETF according to BitBoy.

Grayscale Has Re-Included XRP in Its Fund

On Jan 5, Grayscale investments issued an official statement confirming that is had re-included XRP as a component asset in its Grayscale Digital Large Cap (GDLC) Fund.

This comes after a 2-year hiatus sparked by the SEC’s long-running lawsuit against Ripple. In the official statement, the Asset manager noted that it has now allocated about $9.6 million (2.54% of its $378.5 million GDLC Fund) toward XRP.

In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale has adjusted GDLC’s portfolio by selling certain amounts of the existing Fund Components in proportion to their respective weightings, and using the cash proceeds to purchase Avalanche (AVAX) and XRP. As a result of the rebalancing, Polygon (MATIC) has been removed from GDLC.

– Grayscale Statement

Grayscale’s decision to reintroduce the digital asset to its Digital Large Cap Fund after a two-year absence has not impacted XRP price significantly. In the 48 hours that followed the news, the price has remained muted, consolidating just above the $0.55 territory.

Nevertheless, this defining move by the asset manager, reversing a 2020 decision to remove XRP from its Fund in response to the SEC lawsuit against Ripple, has fueled speculation about the potential for an ETF.

However, the actualization of such an ETF remains largely uncertain.

Despite a resurgence in overall cryptocurrency prices, XRP has struggled to maintain a steady upward momentum. The sixth largest cryptocurrency, which had been anticipated to experience a significant rise following Judge Analisa Torres’s ruling back in July 2023, continues to face challenges.

At the time of writing, CoinMarketCap data, XRP is trading at $0.558, reflecting a 1.26% increase in the past 24 hours.

However, in the weekly-timeframe the token has declined by 8.59%, with a more significant 12% decrease in the past 30 days.