BlackRock Drops Another Bitcoin ETF, But No Sign Of XRP ETF, What’s Going On?
BlackRock, the world’s largest asset manager, has applied for more Bitcoin ETF. This comes as the crypto ETF issuer continues to commit to the BTC and ETH ecosystems and has chosen not to include cryptocurrencies such as the XRP ETF.
BlackRock files for new Bitcoin ETF
BlackRock filed a Form S-1 with its Bitcoin Premium Income ETF. According to the filing, the Bitcoin ETF will seek to track the price of BTC while providing premium income through an actively managed strategy of writing call options on IBIT shares. Over time, the Trust may also write call options on the ETP indices it tracks find BTC investment products generating premium income.
This Bitcoin premium Income ETF will mark BlackRock’s third major crypto ETF offering, as it already offers a Bitcoin ETF and an Ethereum ETF. The world’s largest asset manager has, so far, chosen not to include an XRP ETF or funds that track other crypto assets, despite moves by other similar issuers. Grayscale and Bitwise.
It is noteworthy that last year, BlackRock confirmed that it has no plans to add a Solana or XRP ETF at this time, preferring to focus on its existing Bitcoin and Ethereum ETFs. The asset manager is currently the largest issuer of BTC and ETH ETFs, with total assets of $69 billion and $10 billion, respectively, according to SoSoValue data.
Meanwhile, other crypto ETFs have seen great success despite BlackRock’s reluctance to invest in these funds. SoSoValue data shows that XRP ETFs as a group already boast $1.38 billion in assets since their November launch. This accounts for just over 1% of the altcoin market cap. Solana ETFs they have approximately 1.10 billion in outstanding assets, accounting for 1.50% of the total SOL market.
BlackRock May Test Basket Product Down the Line
Bloomberg analyst James Seyffart said at the time the interview and market expert Nate Geraci that BlackRock seems content to stick with Bitcoin again The cost of Ethereum ETF shares. However, he referred to his previous statement that the asset manager could launch a basket product or active ETF at some point.
This could take the form of a crypto index ETF, which provides exposure to multiple crypto assets instead of a single asset. Such a move would be similar to Ark Invest’s latest financial report with CoinDesk 20 ETF. Cathie Wood Company only offers a Bitcoin ETF position but is now looking to provide exposure to other assets through an index fund, rather than an XRP ETF position or other individual crypto funds.
Meanwhile, Seyffart made the case for the Solana ETF over the XRP ETF, saying it was surprising that BlackRock didn’t evaluate SOL. This came as he described BTC, ETH, and SOL as the ‘big 3’ in terms of crypto assets that institutional investors want to get exposure to.
Featured image from Getty Images, chart from Tradingview.com
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