A market expert has shared several reasons why BlackRock has not yet filed for an XRP ETF despite multiple filings from other asset managers.
Despite a growing wave of institutional interest in XRP-backed exchange-traded funds (ETFs), BlackRock, the world’s largest asset manager, has yet to throw its hat in the ring.
For context, multiple asset managers such as Grayscale, Bitwise, and Canary Capital have collectively filed to launch about 15 XRP ETF products, including spot and leveraged ones, the most for any single asset. However, BackRock remains hesitant.
A recent breakdown by the analyst behind the “XRP Investing” account on X reveals a look at why BlackRock continues to sit on the sidelines, even as competitors like Grayscale, Franklin Templeton, and Bitwise step forward with filings.
Little Incentive, Regulatory Overhang, and Liquidity Factors
According to the analyst, one of the major reasons is the firm’s current dominance in the Bitcoin and Ethereum ETF space. With their iShares Bitcoin Trust crossing $30 billion in assets under management and the Ethereum ETF reaching over $1 billion within just two months, the company sees little incentive to shift focus to a less established asset like XRP.
Notably, another point of concern is regulatory overhang. Although both the Ripple and SEC have agreed to drop their appeals, the lawsuit hasn’t officially concluded.
For a conservative institution like BlackRock, the lingering uncertainty remains a sticking point. Institutions tend to be risk-averse, and the SEC’s past classification of XRP as a potential security still casts a shadow.
Moreover, BlackRock appears to be applying internal benchmarks that XRP hasn’t yet satisfied. These include factors like liquidity, institutional demand, and overall legal clarity. While XRP has shown progress in all areas, the asset reportedly falls just short of the firm’s threshold for a new ETF product.
Patience, Past Fake XRP ETF Filing, and Market Position
Speaking further, the analyst also pointed to patience. Notably, rather than being the first to file, BlackRock seems comfortable allowing competitors such as Grayscale and Franklin Templeton to test the waters. It will observe how the SEC responds to those filings and gauge overall market appetite before entering the XRP ETF space later.
5️⃣ BlackRock doesn’t chase headlines — it waits for leverage.
When they launch something, it’s to win, not to be first. And with $11.6 trillion in AUM, they can afford to wait until the landscape is fully in their favor.
— All Things XRP (@XRP_investing) April 20, 2025
Meanwhile, another reason for its hesitation dates back to a fake XRP ETF filing in November 2023 that falsely linked BlackRock to the product. That incident caused confusion and forced the firm to deny involvement publicly.
According to the analyst, that episode may have contributed to BlackRock’s current cautious stance, especially in terms of public perception.
Further, XRP’s current market share also plays a role. Bitcoin and Ethereum still dominate the crypto landscape, making up the lion’s share of trading volume and institutional interest.
Compared to these leaders, XRP’s lower liquidity and smaller footprint make it a less compelling option for a firm seeking to launch high-demand products. However, XRP is gradually gaining ground, having outperformed ETH by 262% since last November. XRP is currently $74 billion away from overtaking Ethereum in market cap rankings.
Additionally, “XRP Investing” suggested that another factor leading to BlackRock’s delay is likely a lack of demand among institutional clients.
For context, the asset manager typically builds products in response to client demand, and at present, the analyst believes that demand does not appear strong enough to warrant action. Nonetheless, Bitwise CIO Matt Hougan previously noted that they are witnessing massive demand for XRP products from their clients.
Is BlackRock Playing the Long Game?
Lastly, the analyst stressed that BlackRock is likely playing the long game. Rather than jumping into a still-uncertain market, the firm is waiting for XRP to achieve greater regulatory clarity and for rival products to prove successful.
Last January, FOX Business’s Charles Gasparino noted that BlackRock had no plans to launch an XRP ETF. However, industry figures such as Nate Geraci from The ETF Store have suggested that a filing could still happen, but only once the Ripple vs. SEC legal battle fully concludes.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
