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  • U.S. Spot XRP ETFs: Five Possible Reasons Behind BlackRock’s Hesitation to File for One
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U.S. Spot XRP ETFs: Five Possible Reasons Behind BlackRock’s Hesitation to File for One

cryptovert August 11, 2025 2 min read

BlackRock has made bold moves into bitcoin and ether ETFs, but on Friday, the asset manager said it had no immediate plans to file for a spot XRP exchange-traded fund (ETF), dashing the community’s hopes that its entry could help extend XRP’s 2025 rally.

This statement — made the day after the U.S. Securities and Exchange Commission (SEC) and Ripple Labs jointly asked an appeals court to dismiss their respective appeals, signaling an end to their nearly five-year legal battle — has left investors questioning why BlackRock remains on the sidelines.

While several asset managers, including ProShares, Grayscale, and Bitwise, have filed for XRP ETFs since late 2024, BlackRock’s absence is notable, especially given its dominance in the bitcoin and ether ETF markets.

Here are five reasons why BlackRock appears in no hurry to launch a spot XRP ETF, despite the XRP community’s anticipation of a demand-driven price surge.

First, BlackRock has cited limited client interest in cryptocurrencies beyond BTC and ETH. Back in March 2024, Robert Mitchnick, the asset manager’s head of digital assets, said that there’s a misconception that BlackRock will have a “long tail” of other crypto services.

“I can say that for our client base, bitcoin is overwhelmingly the No. 1 focus and a little bit ethereum,” he said during a fireside chat at the inaugural Bitcoin Investor Day conference in New York on March 22.

Second, BlackRock’s strategic caution around regulatory uncertainty plays a role.

Although XRP sales on public exchanges are deemed non-securities, the broader regulatory framework for altcoins remains murky. BlackRock may be waiting for clearer SEC guidelines before entering the altcoin ETF space.

The firm’s conservative approach contrasts with competitors like ProShares, which filed for a spot XRP ETF in January 2025 alongside leveraged and futures-based XRP ETFs, the latter tracking XRP futures contracts rather than the token’s spot price.

Third, BlackRock may see diminishing returns in pursuing a spot XRP ETF given the crowded field. As of August 2025, at least seven firms, including Grayscale, Franklin Templeton and 21Shares, have a pending spot XRP ETF application.

Fourth, the XRP community’s expectations of a price surge may not align with BlackRock’s data-driven strategy. Polymarket odds for the SEC approving a spot XTP ETF in 2025 stand at 77%. BlackRock’s tokenized money market fund on Ethereum and Solana shows blockchain interest, but XRP’s smaller market footprint may not justify the operational costs of a new ETF.

Finally, BlackRock’s global perspective prioritizes markets where XRP demand is less pronounced. While the XRP community, active on platforms like X, anticipates a spot ETF driving demand, much of XRP’s trading volume comes from Asia, where BlackRock’s ETF presence is less dominant.

At press time, XRP was trading around $3.1852, down 3.92% in the past 24 hours, according to CoinDesk Data.

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Previous: Bitcoin Trails Gold in 2025 but Dominates Long-Term Returns Across Major Asset Classes
Next: Here Are 3 Bullish Reasons Why JPMorgan Sees S&P 500 Rallying Much Higher

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