BlackRock, one of the largest asset managers, has stated it has no immediate plans to launch a U.S. spot XRP ETF. This decision is influenced by several factors, including limited demand for the asset and regulatory uncertainties.
Limited Client Demand
BlackRock has indicated that its institutional clients primarily focus on Bitcoin and to a lesser extent Ethereum. Robert Mitchnick, BlackRock's head of digital assets, noted in March 2024 that there's a "misconception" about launching a broad range of crypto products.
CITE_W_A: "For our client base, bitcoin is overwhelmingly the No. 1 focus and a little bit ethereum."
Regulatory Caution
Despite the SEC clarifying that XRP sales on public exchanges are not securities, the overall regulations for altcoins remain uncertain. BlackRock's cautious approach favors waiting for clearer SEC guidelines before entering less established regulatory territories.
Crowded ETF Market
The spot XRP ETF market is already saturated, with at least seven applications pending from major issuers. Entering a crowded market may entail lower returns from investments, which could discourage a firm of BlackRock's size from competing aggressively.
In conclusion, BlackRock continues to uphold a cautious strategy based on data and market conditions, while the XRP ETF market already has a plethora of competitors.
