The Real Reasons BlackRock Is Avoiding an XRP ETF: Expert Insights

The XRP community has questions: why is BlackRock, the biggest name in finance, silent about launching an XRP ETF?

The XRP community has been buzzing with questions about why BlackRock, a behemoth in the financial world, seems to be snubbing the burgeoning XRP ETF scene.

While other players like Grayscale and Bitwise have blitzed through with their filings, applying pressure on the SEC to approve the first-ever U.S. XRP ETF, BlackRock’s silence has been deafening.

Is it a personal dislike for Ripple (XRP) that keeps the biggest dog in the yard at bay? Or is there a deeper strategy at play, one that could have massive implications for the future of Ripple price action and the entire crypto landscape?

A video from Cheeky Crypto titled “CAN SUI 20x FROM HERE? SUI NEWS AND PRICE PREDICTION” took a short detour to break down the XRP situation too. As the host was sipping his morning coffee and scrolling through news, he noticed yet again another XRP ETF headline.

It was probably the 15th one this year alone. Grayscale filed. Bitwise filed. Even lesser-known groups like Canary Capital threw their hats in the ring. But BlackRock? Still nothing.

Why BlackRock Is Still Missing in Action on XRP ETFs

Cheeky Crypto’s investigation uncovered something interesting. BlackRock has already tasted huge success with its Bitcoin and Ethereum products. Their Bitcoin ETF now boasts over $30 billion in assets under management, while their Ethereum fund smashed through $1 billion in just two months.

As the analyst put it, “When you’re winning every hand at the poker table, you don’t leave for the slot machines.” Ripple price and XRP enthusiasm may be rising, but from BlackRock’s view, there’s no need to gamble when Bitcoin and Ethereum are bringing home easy wins.

Regulatory concerns are also a major factor. Even though Ripple largely beat the SEC, there’s no final judgment yet. Conservative giants like BlackRock rely on internal scorecards, and XRP still hasn’t ticked every box for liquidity, demand, and fully clear legal status. Bitcoin and Ethereum have that clarity. XRP is close but not close enough yet.

Strategically, BlackRock is letting firms like Grayscale and Franklin Templeton go first. If the SEC rejects their applications, BlackRock loses nothing. If the SEC approves them, BlackRock can swoop in later and dominate, just like they did with the Bitcoin ETF launch.

Adding even more hesitation, Cheeky Crypto reminded viewers of the fake XRP ETF filing incident from November 2023. A bogus filing claiming to be from BlackRock went viral, forcing them to publicly deny it and leaving a bad taste internally. After such a PR mess, BlackRock is extra cautious about anything related to Ripple.

Institutional Insights: XRP Is Close But Not There Yet

The thread by analyst All Things XRP (@XRP_investing) on X expanded this picture even more clearly.

They pointed out that BlackRock is currently milking their Bitcoin and Ethereum success stories. With $30 billion in their Bitcoin ETF and $1 billion in their Ethereum fund in just 60 days, they simply don’t have an incentive to rush into something riskier.

Point 1: BlackRock has no reason to diversify wildly yet. Their iShares Bitcoin Trust hit $30B AUM. The ETH ETF crossed $1B in 60 days. When you’re dominating the two most proven assets, why add risk?

And despite the legal win for crypto broadly and the huge implications of the potential first-ever XRP ETF from Grayscale and Bitwise, there are still regulatory scars that linger more heavily for conservative giants like BlackRock. As All Things XRP noted, in the eyes of big institutions, the “security” label doesn’t fade easily.

Point 2: From a legal standpoint, BTC and ETH tick every box for BlackRock. They have liquidity, they have legal clarity (or at least enough to meet internal thresholds), and they have client demand. XRP is getting closer but isn’t there yet. It’s a close call, but for optimal risk calculus, they'll wait for the final verdict before making a move.

Moreover, BlackRock’s style has always been clear. They don’t chase headlines. They wait for strategic leverage. Launching a fund isn’t about being first. It’s about winning big once the timing is perfect. As seen with their Bitcoin ETF (iShares IBIT), they prefer to let competitors test the waters and then strike when the risk is priced in.

Past events also haunt them. The 2023 fake XRP ETF filing went viral, forcing BlackRock to publicly deny it and leaving a bad taste internally. They prefer avoiding anything whiff of controversy until regulatory and market clarity is evident.

Another big factor is XRP’s current market share. Bitcoin and Ethereum still dominate around 70% of the total crypto market cap combined. XRP, although growing, still