In a recent post on X, crypto commentator 'All Things XRP' outlines why BlackRock, the world’s largest asset manager, has yet to file for an XRP ETF.
BlackRock's ETF Strategy
The analysis highlights the contrast between BlackRock’s aggressive positioning in the Bitcoin and Ethereum ETF sectors and its lack of interest in XRP. While the iShares Bitcoin Trust surpassed $30 billion in assets under management, the Ethereum ETF quickly exceeded $1 billion just two months after launch. This strategy indicates a focus on assets with a clear institutional profile.
Regulatory Risks and Uncertainties
Despite Ripple's partial victory in its legal battle with the SEC, regulatory concerns remain a significant factor influencing institutional behavior. The uncertainties surrounding XRP's classification as a non-security stand as a considerable deterrent for firms like BlackRock.
ETF Launch Conditions
The analyst asserts that BlackRock's internal criteria for launching crypto ETFs revolve around three core elements: demand, liquidity, and legal clarity. While XRP is nearing these thresholds, it is not yet deemed a fit. Company executives have stated that only Bitcoin and Ethereum currently meet their framework for product approval.
Thus, the analysis suggests that BlackRock's strategy is calculated and focused on long-term market dominance. Expectations and market requirements will influence the firm's decisions on launching new ETFs.
