BlackRock, the world’s largest asset manager overseeing over $11.5 trillion in assets, has recently made headlines with its iShares Bitcoin Trust (IBIT) reclaiming momentum in the cryptocurrency market. After a period of significant downturn, the trust saw an impressive $538 million added in Bitcoin reserves over a brief span of three days, culminating in a $145 million acquisition on March 21, 2025. This marked a significant rebound for Bitcoin ETFs, particularly as IBIT continues to dominate the marketplace, accounting for over 50% of the daily trading volume among U.S. Bitcoin ETFs.
Following a rough February, where outflows from Bitcoin ETFs surged to nearly $4 billion, BlackRock's iShares Bitcoin Trust had found itself struggling to attract further investments, with daily inflows remaining stagnant at around or below $100 million from February 4 until mid-March. However, this trend dramatically reversed on March 18, when the fund added $218 million in Bitcoin, followed closely by another $175 million influx on March 20. Such developments pave the way for renewed confidence among investors who were previously discouraged by the bearish trends of earlier months.
While BlackRock’s growth is considered a beacon of hope for Bitcoin ETFs, the situation surrounding Ripple's XRP adds a layer of complexity to the cryptocurrency landscape. On March 19, Ripple CEO Brad Garlinghouse announced that the SEC intended to withdraw its appeal against the favorable ruling regarding the Programmatic Sales of XRP. However, the SEC has yet to make a formal announcement confirming this withdrawal. The next Closed Meeting, set for March 27, holds potential for a pivotal decision, as it will involve key figures like Acting SEC Chair Mark Uyeda and Commissioner Hester Peirce who will vote on whether to formally dismiss the appeal.
This development is crucial for XRP and its potential ETF filings, as market participants keep a close eye on movements regarding SEC regulations. In parallel, Coinbase CEO Brian Armstrong had declared an end to the SEC’s enforcement case against the exchange, which was confirmed by the SEC on February 27 following a Closed Meeting. For Ripple, any formal withdrawal of the SEC's appeal would undoubtedly bolster the prospects for XRP-spot ETFs, with several firms like 21Shares and WisdomTree already having submitted applications.
Investor sentiment was complex; following Garlinghouse's announcements, XRP experienced fluctuations, concluding March 21 at $2.3800—a decline of 2.27% from the previous day, extending the prior day's drop of 4.43%. On the same day, the wider crypto market experienced a slight decline of 0.44%, totaling a market cap of approximately $2.71 trillion. Despite these setbacks, Bitcoin stabilized around $84,052 after a slight slip of 0.20%, as institutional demand for Bitcoin ETFs appears to be regaining traction.
The significant impact of BlackRock’s inflows into Bitcoin ETFs cannot be overstated. Since IBIT's launch, it has reported total net inflows of $39,669 million, effectively offsetting the $22,526 million outflows recorded from Grayscale’s Bitcoin Trust (GBTC). Analysts have pointed out that without these inflows, the U.S. BTC-spot ETF market would have seen net outflows of $3.6 billion, potentially placing downward pressure on Bitcoin demand.
Nate Geraci, President of the ETF Store, speculated on March 14 about the potential for BlackRock to file for an XRP-spot ETF alongside Solana, stating, "I’m ready to log formal prediction… BlackRock will file for ‘both’ Solana and XRP ETFs. Solana could be any day. Think XRP once SEC lawsuit concluded." This prediction underscores the speculative enthusiasm surrounding Ripple's future with ETFs, particularly reliant on the SEC's forthcoming moves.
Adding potential fuel to the ongoing discussions, Senator Cynthia Lummis reintroduced the Bitcoin Act on March 11, which, if passed, would authorize the U.S. government to acquire one million Bitcoin over five years with a 20-year mandatory holding period. The passage of such legislation could electrify Bitcoin demand, accentuating the need for regulatory clarity that many investors crave.
In summary, the recent actions by BlackRock and Ripple not only highlight the dynamic nature of the cryptocurrency market but also signal a critical moment of transformation. Investor confidence continues to hinge on regulatory clarity from the SEC as crypto markets strive to establish themselves amidst fluctuating demand and complex legal landscapes. The interplay of institutional interest, regulatory actions, and market response will determine the trajectory of cryptocurrencies like Bitcoin and XRP in the years to come.
