- BlackRock hasn’t filed for an XRP ETF due to ongoing regulatory uncertainty, lower liquidity, and unclear institutional demand.
- The firm is waiting for complete legal clarity and stronger market conditions before making a strategic move.
As the ETF market for digital assets surges ahead, one glaring omission has caught the attention of the crypto community: XRP. Despite Ripple’s partial court victory over the SEC and rising momentum for crypto ETFs, BlackRock — the world’s largest asset manager — has remained curiously quiet on the XRP front.
A recent post by prominent crypto commentator “All Things XRP” dives into the reasons behind this silence, revealing that BlackRock’s decision is far more strategic than it appears.
Playing It Safe After Bitcoin and Ethereum Wins
BlackRock’s aggressive push into Bitcoin and Ethereum ETFs has paid off big. Its iShares Bitcoin Trust now boasts over $30 billion in assets under management, while the firm’s Ethereum ETF topped $1 billion in just two months. These successes highlight a cautious but calculated strategy: focus on dominant, institutionally accepted assets and avoid spreading risk to less established players like XRP.
Also read: Binance Enforces Stricter Crypto Transfer Rules in South Africa: New Compliance Measures Begin April 30
XRP’s Legal Cloud Still Lingers
Although Ripple notched a legal win when XRP was deemed not a security in certain contexts, the lack of comprehensive regulatory clarity still raises red flags. BlackRock, known for its risk-averse approach, is unlikely to dive into an asset still under legal scrutiny — especially with the SEC’s stance remaining somewhat ambiguous.
Demand, Liquidity, and Clarity Still Lacking
According to “All Things XRP,” BlackRock’s internal ETF checklist includes three essentials: strong demand, high liquidity, and undeniable legal certainty. While XRP is making strides, it hasn’t yet ticked all the boxes. With competitors like Grayscale and Franklin Templeton showing more appetite for early entry, BlackRock appears content to wait and watch.
Strategic Patience Over First-Mover Advantage
A 2023 fake XRP ETF filing forced BlackRock into an uncomfortable public denial — a moment that reinforced the reputational risks of premature moves in the crypto space. For a firm managing over $11 trillion in assets, it’s not about being first. It’s about being dominant when the time is right.
So, while XRP fans may view BlackRock’s silence as disinterest, the reality may be that the giant is simply biding its time — and when it moves, it’ll be to lead, not follow.