Why BlackRock Isn’t Racing to Launch a Spot XRP ETF
While BlackRock has taken the lead on bitcoin and ether ETFs, it has yet to join the growing list of issuers chasing a spot XRP exchange-traded fund — and it says it has no immediate plans to do so.
That confirmation came just a day after Ripple and the U.S. Securities and Exchange Commission jointly moved to drop their appeals, signaling an end to their long-standing legal battle. The timing reignited speculation that BlackRock might be next to file for a spot XRP product. Instead, the firm’s absence has left many in the XRP community asking why.
Here are five key reasons BlackRock may be holding back:
1. Limited Institutional Demand Beyond BTC and ETH
BlackRock’s strategy is driven by client interest — and according to the firm, that demand remains overwhelmingly focused on bitcoin, with ether a distant second. In March 2024, Robert Mitchnick, BlackRock’s head of digital assets, emphasized that the company does not intend to offer a broad range of crypto products.
“Bitcoin is the No. 1 focus for our clients — by far,” Mitchnick said at Bitcoin Investor Day.
2. Regulatory Uncertainty Still Looms
Despite progress in the Ripple case, the broader regulatory landscape for altcoins — including XRP — remains unclear. Although XRP sales on secondary markets are not considered securities, BlackRock may be waiting for more definitive SEC guidance before committing to an altcoin ETF.
3. Market Already Crowded
At least seven firms, including Grayscale, Franklin Templeton, and ProShares, have already filed for spot XRP ETFs. With competition intensifying, BlackRock may see little advantage in entering a saturated market — especially without a clear regulatory green light.
4. Hype vs. Fundamentals
While retail investors are hopeful a spot ETF could drive prices higher, BlackRock relies on data and fundamentals, not market sentiment. Despite a 77% chance of 2025 approval on prediction platform Polymarket, XRP’s current market footprint may not justify the launch costs or the risk.
5. Focus on Global Strategy Over Community Demand
XRP’s trading volume is concentrated in Asia — a region where BlackRock’s ETF influence is less prominent. With its ETF operations centered in the U.S. and Europe, the firm may not view XRP as aligned with its broader strategy, despite its active crypto-related initiatives on Ethereum and Solana.
As of press time, XRP was trading around $3.1852, down nearly 4% on the day, according to CoinDesk data.
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