'How Foundational Can It Be?' VanEck Says 'Nah' To XRP Despite High ETF Demand

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VanEck Head of Digital Assets Research Matthew Sigel continues to question XRP’s value proposition.

“How foundational can it [XRP] be if BlackRock and VanEck say nah,” Sigel said in a now-deleted post Tuesday on X, responding to a post from NovaDius Wealth Management President Nate Geraci.

Geraci had shared Franklin Templeton‘s statement announcing the launch of its XRP exchange-traded fund. He raised questions about BlackRock’s (NYSE:BLK) refusal to do the same, as Franklin Templeton said the asset “plays a foundational role in global settlement infrastructure.”

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BlackRock was among the asset managers to launch Bitcoin and Ethereum ETFs last year. However, while several others have gone on to launch products backed by other altcoins, including XRP, it has sat on the sidelines.

“At this time, BlackRock does not have any plans to file an XRP or SOL ETF,” a BlackRock spokesperson reportedly told cryptocurrency news outlet The Block in August.

Unlike BlackRock, VanEck has launched a Solana ETF, but appears to have decided against an XRP offering.

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“Dear XRP maxis, I may never understand what your ‘blockchain’ actually does, but I’ll always respect the passion required to pretend it does something,” Sigel said earlier this month, kicking off a war of words with ardent XRP proponents.

BlackRock and VanEck have not budged even as Canary Capital‘s XRP ETF (NASDAQ:XRPC) has recorded the highest day-one trading volume, $58 million, among the over 900 ETFs launched this year. The product also pulled an impressive $250 million in inflows on the day.

XRP is the third-largest cryptocurrency by market cap, excluding stablecoins. The asset is widely seen as a payments cryptocurrency and is often discussed in the context of cross-border transactions due to its ties to the payments company Ripple, which uses it as part of its on-demand liquidity product to facilitate cross-border payments. With the rise of stablecoins, however, detractors have questioned XRP’s value proposition.

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Many in the broader cryptocurrency space also take issue with Ripple’s large XRP holdings. The company holds 34.76 billion XRP, nearly 35% of the XRP supply, in escrow, from which it releases 1 billion per month. That figure was once as high as 55 billion XRP. From the total released monthly, about 70% is relocked and the remainder is used for the company’s operating costs.

Many see the structure as benefiting Ripple at the expense of retail holders, as it creates persistent sell-side pressure on the asset. Still, XRP maintains a strong community following, with supporters nicknamed the “XRP Army.”

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This article 'How Foundational Can It Be?' VanEck Says 'Nah' To XRP Despite High ETF Demand originally appeared on Benzinga.com