BlackRock’s Crypto ETF Game Plan: Solana and XRP on the Horizon
In Brief
BlackRock is expected to file for Solana and XRP ETFs to maintain its crypto dominance, but regulatory uncertainty, SEC lawsuits, and competition from other asset managers could shape the timeline and outcome.
Nate Geraci, president of The ETF Store, believes BlackRock is poised to file for Solana and XRP exchange-traded funds (ETFs). In a March 14 post on X, he suggested that BlackRock wouldn’t let rivals take the lead in ETFs for two of the top five non-stablecoin assets.
Geraci expects a Solana ETF filing in the near future, while an XRP filing may follow once the SEC lawsuit is resolved.
How close is this prediction to reality?
BlackRock to Reinforce Crypto ETF Dominance
Institutional interest in Solana and XRP exchange-traded funds (ETFs) is gaining momentum, with several asset managers, such as Grayscale, Bitwise, and VanEck, already submitting applications to the SEC. JPMorgan’s analysis suggests that Solana ETFs could attract $3 billion to $6 billion in inflows over 6 to 12 months, while XRP ETFs might see between $4 billion and $8 billion, depending on Bitcoin’s adoption trajectory.
Despite this growing demand, XRP’s regulatory status remains uncertain. Ripple Labs has been embroiled in a legal battle with the SEC since 2020, over allegations that XRP was sold as an unregistered security.
In July 2023, a judge ruled that XRP isn’t necessarily a security on secondary markets, although institutional sales were deemed unregistered securities. The SEC’s legal action is still ongoing.
According to FOX Business journalist Eleanor Terrett, Ripple and the SEC are in settlement talks, focused on penalties and aligning with recent policy shifts from the SEC. With the broader push for clearer regulations in the crypto space, the resolution of this case could be pivotal.
If XRP were to be reclassified as a commodity, it might open the door to ETF approval.
How much BlackRock Controls in terms of ETFs
As of now, BlackRock holds close to 568,000 Bitcoin, valued at over $47.8 billion, making it one of the largest BTC holders globally. Recently, on March 14, BlackRock’s iShares Bitcoin ETF (IBIT) wallet received an additional 268 BTC, valued at over $22 million.
Beyond Bitcoin, BlackRock holds substantial amounts of other cryptocurrencies, including over 1.2 million Ether, valued at approximately $2.3 billion, 70 million USDC stablecoins, and a variety of altcoins.
The success of Bitcoin ETFs, largely driven by firms like BlackRock, has injected tens of billions into the crypto markets, disrupting the typical capital rotation seen in crypto investments. Despite some volatility in early 2025, with crypto ETFs experiencing $4.75 billion in outflows, BlackRock continues to show commitment to the sector.
In early March 2025, the iShares Bitcoin ETF saw $193 million in outflows, contributing to the overall $756 million withdrawn from BTC ETFs. However, BlackRock added IBIT to its model portfolio in February 2025.
These portfolios, designed for asset managers, help diversify risk and offer passive investors exposure to Bitcoin without the need for self-custody or on-chain transactions. This move is expected to attract more capital into Bitcoin investments.
Other Players Racing BlackRock to Solana and XRP ETFs
Several players are racing to launch Solana and XRP exchange-traded funds (ETFs), with Hasdex and Canary Capital leading the charge.
Hasdex has filed with the U.S. Securities and Exchange Commission (SEC) to amend its Nasdaq Crypto Index US ETF (NCIQ), aiming to expand it to include major altcoins such as XRP, Solana, Cardano, Chainlink, Uniswap, Litecoin, and Avalanche. This expansion would diversify the ETF, which currently focuses primarily on Bitcoin and Ethereum.
Canary Capital is also entering the race, applying for approval to launch the first ETF based on Sui, the native token of the Sui blockchain. This marks Canary’s sixth filing with the SEC, which also includes plans for ETFs tied to Litecoin, Hedera, Axelar, XRP, and Solana.
Steven McClurg, Canary’s founder, shared that there has been a “tremendous shift in the landscape and mood” among cryptocurrency market participants since the election. He expressed optimism, stating he is “pretty optimistic that we’re on track to see many of these approved before the end of 2025.”
Meanwhile, Hashdex’s NCIQ ETF, with around $66 million in assets, has already gained traction in the market, offering exposure to Bitcoin and Ethereum. The move to add more altcoins reflects growing institutional interest in diversifying crypto ETF portfolios.
Canary’s SUI ETF, targeting a $7.4 billion market cap, would be the first to track the price of Sui, a coin currently ranked in the top 25 cryptocurrencies.
Will XRP and Solana ETFs be Hits like BTC and ETH?
XRP and Solana ETFs could follow in the footsteps of Bitcoin and Ethereum ETFs if regulatory hurdles are cleared. XRP recently surged 5%, reaching $2.30 amid speculation that the SEC may classify it as a commodity, a move that would resolve legal uncertainties and encourage institutional investment. SEC officials are currently evaluating whether XRP should be treated like Bitcoin and Ethereum, both of which are regulated as commodities. If XRP gains this status, it could significantly boost the likelihood of an XRP ETF approval.
Market analysts believe that an official statement from the SEC confirming XRP’s commodity status could trigger a price rally, potentially pushing XRP back to its previous high of $3.10. The approval timeline for an XRP ETF largely depends on the resolution of Ripple’s legal battle, with industry experts predicting approval by late Q3 or early Q4 of 2025.
Similar to the Bitcoin ETF approval in January 2024, which led to a surge in institutional inflows, XRP could see over $5 billion in inflows within the first few months of an ETF launch. Analysts assign a 73% probability of XRP ETF approval by December 2025. Trump’s endorsement of altcoins for a potential US crypto reserve is expected to accelerate ETF approvals for altcoins like XRP. The SEC is reviewing several XRP ETF applications, with decisions expected by mid-October.
Will Solana ETF Happen in 2025?
Solana is positioning itself to become the next cryptocurrency to seek ETF approval, with filings from VanEck and 21Shares recently concluding their 240-day review period in mid-2024. However, following the expiration of this deadline, the SEC delayed the review of Solana ETF applications, as well as those for XRP, Litecoin, and Dogecoin, amidst growing criticism over its approach to crypto.
Despite these delays, industry experts remain optimistic about Solana’s chances of ETF approval in 2025. ETF President Nate Geraci predicted that 2025 would be the year of crypto ETFs, and he anticipates Solana receiving approval during the year.
Former Trump White House Secretary Anthony Scaramucci also expressed confidence that, should Trump be reelected, Solana could secure SEC approval as early as Q1 2025, with some suggesting approval could come “in the next two weeks.” The prediction market Polymarket currently assigns an 82% probability to Solana’s ETF approval in 2025.
Several factors contribute to this optimism, with Solana’s performance standing out. According to Lennix Lai, Global Chief Commercial Officer at OKX, Solana’s blockchain has driven nearly “50% of all global DEX volume,” showcasing its significant influence in reshaping the DeFi landscape. Furthermore, its high transaction speeds and low gas fees have attracted widespread use, bolstering its position in the crypto industry.
What Now?
Analysts like Bloomberg’s Eric Balchunas have pointed out that Solana’s classification as a potential security could delay its ETF approval, possibly pushing the timeline to 2026, as the SEC reviews the legal status of assets like Solana, XRP, and Litecoin.
As Martins Benkitis, co-founder and CEO of Gravity, explained, Solana faces “higher regulatory hurdles” due to its token distribution and the foundation’s involvement, making its regulatory path more complex.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
