Widely followed XRP community researcher “SMQKE” has outlined several reasons why BlackRock has yet to file for a spot XRP ETF.
Expectations for a BlackRock-backed XRP ETF continue to rise amid growing demand, with more than 10 active applications already under review by the SEC. Firms like Grayscale, Franklin Templeton, and Bitwise have already taken the leap.
However, the world’s largest asset manager remains on the sidelines. XRP community commentators have identified various factors influencing this cautious approach during such a competitive period.
Uncertainty Still Clouds XRP’s Path
SMQKE suggested that although U.S. courts have ruled that XRP is not a security, an official classification from the SEC could further cement that status. The commentator argued that this lack of regulatory finality is prompting cautious behavior among institutional players.
Meanwhile, the SEC recently postponed decisions on XRP ETF applications from Grayscale and 21Shares to June or October 2025.
According to SMQKE, this move signals continued hesitation at the federal level. They believe BlackRock is waiting for consistent regulatory guidance before entering the XRP ETF space.
XRP Futures Just Launched, But It’s Still Early
Notably, XRP futures officially debuted on the CME on May 19, with $19 million in trading volume on the first day. While this marks a major step forward, the market is still in its early stages, according to SMQKE.
They argue that institutional investors rely on well-established derivatives markets for hedging and risk management. Bitcoin and Ethereum had deep, liquid CME futures long before BlackRock pursued ETFs for those assets. Essentially, XRP needs more time to reach similar market maturity.
Liquidity Not Deep Enough — Yet
SMQKE also noted that despite being among the top altcoins in terms of market depth, XRP’s liquidity may still fall short of the high standards required for ETF operations. The analyst emphasized that stable and scalable liquidity is essential for handling large inflows and redemptions.
The SEC closely evaluates this factor in its ETF reviews. BlackRock may simply be waiting for the XRP market to grow further before launching a product.
Focused on What’s Working
Notably, BlackRock’s existing Bitcoin and Ethereum ETFs are already experiencing strong inflows. Specifically, the iShares Bitcoin Trust has recorded $46.6 billion in inflows since its inception, more than double the combined inflows of all other asset managers.
Similarly, its spot Ethereum ETF has seen $4.34 billion in inflows since launch. BlackRock has stated that it is doubling down on these products to drive broader adoption among its clients. This suggests that pursuing other crypto ETFs, such as one for XRP, is not an immediate priority.
Waiting for the Right Conditions
SMQKE suggested that with XRP and Solana leading the current wave of ETF applications, BlackRock may be monitoring how the SEC handles these first movers. According to the analyst, BlackRock is not ignoring XRP but is simply waiting for the right moment.
They believe the firm is observing regulatory developments, market maturity, and liquidity trends before making a strategic move.
Essentially, the wait for the world’s largest asset manager to join the XRP ETF conversation could take some more time.
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