The crypto world was buzzing after the U.S. Securities and Exchange Commission (SEC) and Ripple Labs finally ended their nearly five-year-long legal battle. Many XRP supporters assumed this would open the door for a wave of institutional investment, especially from big names like BlackRock. But on August 8, the world’s largest asset manager confirmed it has no immediate plans to file for a U.S. spot XRP exchange-traded fund (ETF).
For investors, this wasn’t just surprising; it was deflating. With Bitcoin and Ethereum ETFs already in the market and performing well, many thought XRP was next in line. Instead, BlackRock’s decision leaves a big question: What’s holding them back?
1. Client Demand Isn’t There Yet
According to Robert Mitchnick, BlackRock’s head of digital assets, Bitcoin remains the top focus for the firm’s clients, with Ethereum in second place. Other cryptocurrencies, including XRP, are far less popular among their investors.
That matters. BlackRock doesn’t just launch products because the market expects them. They respond to what their biggest clients are asking for. Without strong and consistent interest in XRP from institutions, there’s little incentive for them to rush an application.
2. Regulatory Uncertainty
Yes, the SEC case is over and Judge Analisa Torres ruled that retail sales of XRP aren’t securities. But the bigger picture of U.S. crypto regulation is still unclear.
Most altcoins still exist in a grey area when it comes to federal rules. BlackRock’s strategy has often been to avoid rushing into markets until the legal framework is well defined. This is the opposite of some competitors, like ProShares, which filed for an XRP ETF back in January alongside leveraged and futures products.
3. The Market Is Already Crowded
BlackRock also faces a practical challenge: the spot XRP ETF space already has at least seven pending applications, from firms including Grayscale, Franklin Templeton, and 21Shares. Entering now means joining a crowded room, competing for the same slice of investor interest.
The company is known for picking its battles. If the revenue potential isn’t strong enough and if competition is already high, it’s unlikely they’ll see it as worth the cost and effort.
4. Focus Is Still on Bitcoin and Ethereum First
BlackRock’s crypto ETF strategy has so far revolved mainly around Bitcoin and Ethereum assets that dominate institutional interest and global trading volume. XRP may have strong community support online, but its largest trading activity comes from Asia.
Since BlackRock’s ETF footprint is strongest in the U.S. and Europe, where XRP demand is smaller, scaling a new product around it right now may not match their global business priorities.
5. Watching the Rules Take Shape
One other reason for patience could be regulatory timing. The end of the Ripple lawsuit frees the SEC to work on clearer rules for crypto. SEC Chair Paul Atkins and Commissioner Hester Peirce have both said that policy clarity is the focus now.
In Congress, lawmakers are also advancing the Digital Asset Market Clarity Act, though it faces political pushback. BlackRock may be waiting for these developments before committing to an altcoin ETF launch.
What This Means for XRP Investors
Without BlackRock’s participation, XRP loses out on a potential price boost that tends to come when giant asset managers get involved. Still, other players like 21Shares and Grayscale are pushing their applications forward. If the SEC approves even one spot XRP ETF in late 2025, it could still unlock significant institutional inflows.
At the time of writing, the XRP price is around $2.97, down nearly 5% over the last 24 hours. The market remains volatile, but sentiment within the XRP community is far from broken.
For now, BlackRock’s decision isn’t about distrust in the token. It’s about timing, client demand, and regulation. And until those pieces fall into place, the company seems content to focus on Bitcoin and Ethereum. XRP supporters, on the other hand, will be watching every move the SEC and Congress make in the coming months.
Written By Fazal Ul Vahab C H
