BlackRock applies for XRP ETF, will it be approved en masse again?”…SEC, Large company favoritism controversy spreads

Criticism is growing that the U.S. Securities and Exchange Commission (SEC) is favoring large asset management companies. If BlackRock applies for an XRP spot ETF, the question is whether the SEC will approve it again even if it applies later than small and medium-sized management companies.

On the 7th (local time), Bloomberg Intelligence, ETF specialist media, and legal experts unanimously criticized that “the SEC’s practice of ignoring the order of receipt of ETF applications seriously undermines the first-in, first-out principle.” In particular, small and medium-sized management companies such as VanEck, 21Shares, and Canary are urging the SEC to send an official letter asking them to “stop large companies from copying our ideas.”

Nate Geraci, president of ETF Store, criticized, “The SEC has repeated the mistake of approving it together even if large companies imitate the innovation of small companies as it is,” adding, “The process of approving Bitcoin and Ethereum ETFs was a complete failure.” He pointed out, “For example, even if BlackRock submits a Solana or XRP spot ETF next week, the SEC will try to process it all at once again, which is clear reverse discrimination against small businesses.”

Bloomberg reporter Eric Balchunas also said, “The recent ETF batch approval was an abnormal method,” and “There is a need to return to the first-in, first-out principle in the future.” However, he also added, “Realistically, the entire approval process cannot be judged solely by the order of submission.”

Regarding this, legal advisor Andrew Jacobson advised, “The current SEC review of cryptocurrency ETFs is automated around S-1 documents,” and “The order of approval should be determined by comprehensively considering the timing of submission and the speed of response.”

Currently, the SEC has various single and composite cryptocurrency ETF applications such as Solana (SOL), XRP, and Dogecoin (DOGE) pending. Some are products that include staking functions and require a higher level of review.

The industry is warning that if the SEC does not guarantee priority for innovative ideas, the survival base of small and medium-sized management companies will be shaken. If the structure where the influence of large management companies such as BlackRock dominates the overall ETF market settles, concerns are growing that the diversity and fairness of the cryptocurrency ETF ecosystem could be seriously undermined.