Key Takeaways
- Conflicting reports speculate that BlackRock, the world’s largest asset manager, is preparing to make significant investments in Ripple’s XRP token as it explores opportunities in the crypto asset market.
- While there are no confirmations on the rumor, XRP has been on the receiving end of significant market traction since the U.S. presidential election, with its price surging over 400% and its market cap topping that of SOL, USDT, and BNB coins.
- XRP is currently the world’s third most valuable cryptocurrency, behind only Bitcoin (BTC) and Ethereum (ETH), with its market capitalization peaking at ATH of $158.5 billion.
- Ripple has outperformed 88% of the stocks on the S&P 500 Index, and its valuation is higher than BlackRock ($158 billion), Uber ($154 billion), Plantir ($151 billion), Pfizer ($146 billion), Citigroup ($136 billion), and Lockheed Martin ($123 billion)
According to multiple reports, asset management giant BlackRock is making a strategic investment in Ripple’s XRP cryptocurrency. This move could potentially reshape the crypto market and position XRP as one of the leading digital currencies.
One particular report by Binance Square states that the $9 trillion Wall Street giant’s interest in Ripple points to a major shift within the financial industry. A capital infusion such scale could lead to a significant amount of liquidity being pumped into the crypto market, attracting other institutional investors to capitalize on the opportunity.
This development could significantly boost XRP’s prospects as a leading cryptocurrency and its legitimacy in mainstream finance. It could also lead to massive trading volumes for the cryptocurrency, which would in turn push its price to all-time highs.
Is BlackRock Investing In Ripple (XRP)?
As per the original report, BlackRock’s interest in Ripple is tied to the company’s ongoing efforts to explore the potential of the crypto market. However, before we get into further details, it is important to clarify that the $9 trillion represents the total assets under the management (AUM) of the investment behemoth and, not the amount it intends to allocate to XRP.
At press time, BlackRock has not made any public statement confirming its direct investment in Ripple or the XRP token. Meanwhile, the Wall Street heavyweight has made significant investments in Bitcoin (BTC) and Ethereum (ETH), even launching exchange-traded funds (ETFs) backed by those coins, signaling its strong interest in blockchain technology and crypto assets.
As of December 2024, BlackRock holds approximately 495,443.7 BTC, valued at $48.8 billion, in its iShares Bitcoin Trust ETF (IBIT), representing about 2.36% of the flagship cryptocurrency’s total supply of 21 million coins. In terms of Ether, the company’s holdings in its iShares Ethereum Trust ETF (ETHA) are significantly smaller, totaling approximately 349,970 ETH, worth around $910 million.
During a recent interview, BlackRock CEO Larry Fink was asked about the possibility of launching an XRP-focused investment product, which he declined to answer, leaving much to speculation. His silence on the matter suggests that any investment in the third-largest cryptocurrency by market capitalization, if true, is still in its preliminary stages.
Riding the wave of the buzz, a fraudulent filing claiming the creation of a “BlackRock iShares XRP Trust” briefly boosted XRP prices by 12% last month. It was quickly debunked, further illustrating the crypto market’s sensitivity to rumors.
Ripple’s use case sets it apart from the other major blockchains and their native tokens. XRP is designed to facilitate cross-border financial transactions on the XRP Ledger network and aims to replace the aging SWIFT interbank communication system with a blockchain-based protocol that is fast, highly efficient, and cost-effective to the user.
Ripple Outperforms 88% of S&P 500 Stocks, Currently Valued Higher Than BlackRock And Pfizer
XRP has been the biggest benefactor of the latest cryptocurrency bull run, with its price surging to a six-year high of $2.67. Over the past week, its market capitalization has more than doubled, going from $75.3 billion on November 26 to an all-time high of $158.5 billion on December 4. During this time, XRP managed to overtake Solana (SOL) and Tether (USDT) by market cap to become the third most valuable crypto asset.
According to data sourced by Stock Analysis, this upward trend has ranked XRP 61st out of the 503 stocks in the S&P 500 Index – outperforming 88% of them. Ripple’s market is now just above the likes of BlackRock ($158 billion), ride-sharing company Uber ($154 billion), American software firm Palantir ($151 billion), biotech giant Pfizer ($146 billion), banking behemoth Citigroup ($136 billion), and defense contractor Lockheed Martin ($123 billion).
The last time XRP came anywhere close to its current market cap was during the tail end of Bitcoin’s 2017 bull run when it was valued at $131.7 billion in January 2018.
Ripple’s surge has been attributed to several factors, including Donald Trump’s landslide victory in the U.S. Presidential election, the resignation of the Securities and Exchange Commission (SEC) chairman Gary Gensler, reports that the financial regulator could reach a settlement with the company on its long-standing lawsuit, and leading asset managers including Bitwise, WisdomTree, and 21Shares filing applications for an XRP-backed spot ETF.
At the time of writing, Ripple (XRP) is trading at $2.63 – up 2.42% in the last 24 hours.
