BlackRock, the world’s largest asset manager, has been successful with its Bitcoin and Ethereum ETFs. The Bitcoin ETF has reached over $30 billion in assets, while the Ethereum ETF reached $1 billion in just two months. However, BlackRock has not yet filed for an XRP ETF.
One reason for this may be the legal troubles surrounding XRP. Although Ripple, the company behind XRP, has mostly resolved its legal battle with the SEC, there is still some uncertainty around XRP in the eyes of large financial institutions. Legal clarity is essential for companies like BlackRock, and the “security” label tied to XRP makes it a riskier option.
BlackRock has stated that its ETF decisions are based on strong demand, high trading volume, and clear legal status. Currently, only Bitcoin and Ethereum meet these standards. XRP is close, but not quite there yet.
Instead of being the first to file for an XRP ETF, BlackRock is watching how other firms like Grayscale and Franklin handle XRP-related products. They want to see how the market and regulators respond before getting involved. This cautious approach has worked well for BlackRock in the past.
XRP still only makes up a small piece of the cryptocurrency market, with Bitcoin and Ethereum comprising nearly 70 percent of the total market. This means there is less liquidity and less interest from big investors in XRP, which is another factor that may explain why BlackRock has not filed for an XRP ETF.
However, things could change in 2025. Some analysts believe that a shift in U.S. politics could lead to more crypto-friendly regulations. If this happens, ETFs for coins like XRP could be approved by the end of 2025. BlackRock may decide to enter the market later, once the rules are clearer and the demand is stronger.
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