BlackRock Shuts Door on Spot XRP ETF—Here’s Why It’s Staying Out of the Game
The XRP community might have popped the champagne after Ripple and the U.S. Securities and Exchange Commission (SEC) agreed to finally end their nearly five-year legal battle.
But less than 24 hours later, BlackRock—the king of Bitcoin and Ethereum ETFs—poured a bucket of cold water over the party.
On Friday, the asset management giant made it clear: it has no immediate plans to file for a spot XRP exchange-traded fund (ETF). For traders hoping BlackRock’s entry would fuel the crypto’s 2025 rally, this was a gut punch.
Why the XRP ETF Snub?
It’s not like no one’s trying. ProShares, Grayscale, Bitwise, Franklin Templeton, and 21Shares have all lined up spot XRP ETF applications since late 2024. Yet BlackRock, with its dominance in the BTC and ETH ETF game, is still sitting this one out. And there are a few reasons why.
First, BlackRock’s own customers just aren’t that into it. Back in March 2024, Robert Mitchnick, BlackRock’s head of digital assets, said bitcoin is by far the main focus for their clients, with Ethereum a distant second.
“There’s this misconception that we’re going to have a long tail of other crypto services,” Mitchnick said at the Bitcoin Investor Day conference. “That’s not what our clients are asking for.”
Second, there’s the messy altcoin regulatory landscape. While the sales on public exchanges aren’t considered securities, the broader SEC framework for altcoins is still fuzzy. BlackRock has a reputation for playing it safe and might be waiting for a cleaner rulebook before jumping in.
Third, the competition is already fierce. With at least seven other firms chasing spot XRP ETF approval, the potential returns might not justify the hassle—especially for a token that doesn’t command Bitcoin-level demand.
Fourth, BlackRock isn’t swayed by the hype. Yes, Polymarket odds give a 84% chance of the SEC approving a spot XRP ETF in 2025. Yes, the XRP army is convinced an ETF would send prices moonward. But BlackRock works off data, and right now, XRP’s market footprint is still relatively small.
Polymarket XRP ETF approval odds (Source: Polymarket)
And finally, it’s about geography. Much of the altcoin’s trading volume comes from Asia—regions where BlackRock’s ETF influence isn’t as strong. From a global strategy perspective, that puts the crypto lower on the priority list.
The Bottom Line
For Ripple fans, BlackRock’s “not now” doesn’t mean “never.” The firm is already exploring blockchain through its tokenized money market fund on Ethereum and Solana. But until client demand grows, regulations clear up, and the ETF race thins out, it looks like XRP will have to keep fighting for the attention of Wall Street’s biggest player.
