What’s Holding BlackRock Back? Five Theories on the Delay of a U.S. Spot XRP ETF

BlackRock’s Absence From Spot XRP ETF Filings: Five Possible Factors

BlackRock has reaffirmed that it has no immediate plans to pursue a spot XRP exchange-traded fund (ETF), even as competitors aggressively move forward with filings. The decision, confirmed Friday, follows renewed optimism in the XRP community after Ripple Labs and the SEC requested to dismiss their appeals—signaling an end to a years-long legal dispute.

Despite the shift in legal tone, and a wave of filings by firms like Grayscale, Bitwise, and ProShares since late 2024, BlackRock remains notably absent from the conversation. The firm’s hesitation appears to be a calculated move based on market demand, regulatory prudence, and broader strategic priorities.

Here are five likely reasons behind BlackRock’s stance:

1. Client Interest Focused on Bitcoin and Ether
According to BlackRock’s digital assets head Robert Mitchnick, demand from institutional clients continues to center overwhelmingly around bitcoin, with some interest in ether. Speaking in March 2024, Mitchnick downplayed expectations for a broad suite of crypto products, noting that most clients are not yet asking for access to other tokens.

2. Regulatory Uncertainty Around Altcoins
While XRP sales on secondary markets may no longer be classified as securities, the broader regulatory status of altcoins remains ambiguous. Unlike competitors willing to move early, BlackRock appears to be waiting for more definitive guidance from the SEC before committing resources.

3. Competitive Saturation
At least seven asset managers have filed for spot XRP ETFs, including Grayscale, 21Shares, and Franklin Templeton. For a firm like BlackRock, the increasingly crowded field may offer diminishing returns—especially without clear differentiation or early-mover advantage.

4. Limited Strategic Value of an XRP ETF
While the XRP community is bullish on the potential impact of a BlackRock-backed ETF, the asset manager is likely weighing cost vs. demand. Despite Polymarket odds showing a 77% chance of SEC approval in 2025, XRP’s smaller market size and limited institutional traction may not justify a launch.

5. Global Market Priorities
XRP’s strongest liquidity and trading volumes are concentrated in Asia—regions where BlackRock’s ETF footprint is less pronounced. The firm may see greater strategic value in expanding its presence in markets where BTC and ETH have broader institutional relevance.

At the time of writing, XRP was trading at $3.1852, down 3.92% over the past 24 hours, according to CoinDesk data.