The XRP price remained under pressure on Saturday as profit-taking continued. Ripple was trading at $3.28 on Saturday, up from this week’s low of $2.95. This article explores the next XRP target and why BlackRock may apply for a spot Ripple ETF.
Why BlackRock Will Apply for a Spot XRP ETF
BlackRock, the largest asset manager, is expected to apply for a spot XRP ETF later this year, following the success of its two crypto funds.
Data shows that the iShares Bitcoin Trust (IBIT) has had over $57 billion in inflows and now has $86 billion in assets. If this trend continues, the fund will likely reach the $100 billion milestone this year.
Similarly, the spot Ethereum ETF has also continued to add assets this year, and now holds $10.69 billion.
These ETFs have become so successful that IBIT is BlackRock’s eighth biggest fund and its most profitable. With a 0.25% expense ratio, the fund generates approximately $215 million annually.
In contrast, the iShares Core S&P 500 ETF (IVV), with $642 billion in assets and a 0.03% expense ratio, generates $192 million. ETHA is making $25 million.
Therefore, it makes sense for BlackRock to venture more into the crypto space as it is more profitable.
Furthermore, evidence suggests that there is a strong demand for XRP ETFs on Wall Street. The recently launched Teucrium XRP ETF (XXRP) has amassed $383 million in assets in under three months.
READ MORE: Calm Before the Storm? Pi Coin Price Value Nears Breakout
Similarly, the ProShares Ultra XRP ETF (UXRP) has over $85 million in assets, less than a month after its launch. This asset growth is notable because, historically, these leveraged ETFs are often niche products.
JPMorgan analysts have predicted that spot XRP ETFs will attract over $8 billion in inflows in the first year. That would match what Ethereum funds did in their first year, as their inflows have jumped to $9.3 billion.
Another reason BlackRock may consider a spot XRP ETF is that the SEC’s lawsuit against Ripple ETF has been resolved. Additionally, Ripple has utility as it continues to disrupt the financial industry. For example, its Ripple USD (RLUSD) stablecoin has attracted over $530 million in assets.
XRP Price Technical Analysis
The daily chart reveals that the XRP price has been under pressure over the past few days, declining from a high of $3.66 to $3.10 today. This retreat is likely because the token is forming the handle section of the cup-and-handle pattern, one of the most bullish signs in technical analysis.
XRP has remained above the 50-day and 200-day Exponential Moving Averages (EMA). That is a sign that bulls remain in control.
Therefore, the token is likely to continue rising, as bulls target the cup-and-handle target of $ 5.20. This target is obtained by first measuring the cup’s depth and then measuring the same distance from its upper side.
READ MORE: Ethereum Price Prediction: Here’s Why ETH is About to Soar
