BlackRock’s decision to hold back on filing for a spot XRP exchange-traded fund (ETF) has stirred the waters in the crypto community. Despite its forays into bitcoin and ether ETFs, the financial giant announced last Friday that it has no immediate intention of diving into the XRP ETF market. This comes on the heels of a significant development—both the U.S. Securities and Exchange Commission (SEC) and Ripple Labs have agreed to dismiss their appeals, potentially concluding a five-year legal saga. Yet, BlackRock’s hesitation raises eyebrows.
Client Priorities and Regulatory Hurdles
BlackRock’s approach seems laser-focused on client demand, which, according to Robert Mitchnick, the firm’s head of digital assets, remains predominantly fixed on bitcoin and ethereum. At a conference in New York last year, he indicated that clients aren’t clamoring for a “long tail” of crypto services, suggesting that the enthusiasm for XRP may not translate into actionable interest within BlackRock’s clientele. This sentiment echoes recent market movements, as detailed in our analysis of Bitcoin Bounces, Ethereum and XRP Flash Strong Signals.
Then there’s the regulatory landscape to consider. While XRP sales on public exchanges aren’t classified as securities, the regulatory fog around altcoins is far from lifting. BlackRock’s cautious strategy might be a waiting game for clearer SEC guidelines, aligning them more conservatively than competitors like ProShares. The latter, alongside Grayscale and Bitwise, has already filed for spot XRP ETFs, embracing the regulatory risk BlackRock seemingly shuns for now.
Market Saturation and Strategic Calculations
The crowded field of XRP ETF filings could be another deterrent for BlackRock. With at least seven firms, including heavyweights like Franklin Templeton and 21Shares, vying for approval, the potential returns on a new XRP ETF might not be as enticing as they once appeared. BlackRock’s dominance in the bitcoin and ether ETF markets doesn’t necessarily guarantee a similar outcome with XRP, particularly when the asset manager’s data-driven strategies highlight diminishing returns in an oversaturated market.
Moreover, the XRP community’s anticipations of a price surge—should an ETF be approved—might not align with BlackRock’s cautious, data-centric approach. As it stands, the odds for the SEC greenlighting a spot XRP ETF this year hover around 77%, according to Polymarket. Yet, BlackRock’s global strategy perhaps finds more value in markets with a more pronounced demand for its existing products. XRP’s trading volume, largely driven by Asia, underscores a disconnect between regional demand and BlackRock’s current market priorities. This disconnect is further highlighted in our recent coverage of how XRP, Ethereum Lead Crypto Market Rebound as Trump Reignites Trade War.
A Global Perspective and Future Considerations
BlackRock’s global outlook plays a significant role in its ETF strategy. While the XRP community fervently anticipates that a spot ETF could catapult demand, BlackRock’s focus on markets where XRP’s popularity is tepid could explain its reluctance to leap into the fray. Their tokenized money market fund ventures on Ethereum and Solana indicate a keen interest in blockchain technology, but XRP’s smaller market footprint might not justify the operational expenses of launching a new ETF.
As XRP trades around $3.1852, down nearly 4% in the last 24 hours, the absence of BlackRock’s endorsement through a spot ETF leaves investors pondering the token’s trajectory. Will BlackRock’s hesitance shift if regulatory clarity emerges or if client interest pivots? Only time will tell. The crypto landscape is nothing if not unpredictable—raising questions about whether the ripple effect of BlackRock’s eventual decision could reshape market dynamics. Until then, the community waits, eyes trained on regulatory developments and market shifts.
Source
This article is based on: U.S. Spot XRP ETFs: Five Possible Reasons Behind BlackRock’s Hesitation to File for One
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
