Despite strong market interest, BlackRock is not rushing to file for an XRP ETF. Researcher SMQKE identifies several key factors behind this decision.
Regulatory Challenges
One of the main reasons BlackRock is not applying for an XRP ETF is the regulatory uncertainty. The SEC still has not defined whether XRP is a security or a commodity, creating significant hurdles for institutional investors looking to develop their ETF products.
Immature Derivatives Market
Another reason is the immaturity of the derivatives market associated with XRP. Although XRP recently launched its CME futures, its derivatives market has not yet reached a level necessary for the next steps in ETF development. Institutional investors often wait for certain depth and turnover in markets before making investment decisions.
Market Liquidity and ETF Readiness
According to Kaiko research, XRP has high liquidity. However, the SEC requires not just liquidity, but its consistency to support large capital inflows. While XRP shows strong results in investor interest, BlackRock is likely to prefer stability before filing for an ETF.
Thus, BlackRock is not dismissing the idea of creating an XRP ETF but is merely waiting for clearer regulatory conditions, stability in the derivatives market, and convincing liquidity indicators.
