BlackRock's Failure to File for an XRP ETF Explained by a Leading Expert, Identifying Potential Causes
BlackRock, the leading player in the Exchange-Traded Fund (ETF) sector, is expected to make a move beyond Bitcoin and Ethereum (ETH) with single-asset spot ETFs soon, according to various predictions. However, the financial giant has yet to file for XRP or Solana (SOL) spot ETFs, despite the SEC's new ETF approval framework.
Nate Geraci, President of NovaDius Wealth Management, suggests that BlackRock might be waiting for the SEC's new exchange-traded fund approval framework. The SEC's new rules, aimed at facilitating crypto ETF approvals, are expected to be in place by mid-2025.
BlackRock's strategic focus remains on Bitcoin and Ethereum ETFs, which already hold strong institutional demand. The company's hesitation to diversify into altcoins such as XRP and Solana is influenced by several factors.
One of the key factors is the regulatory climate. While the SEC has streamlined rules to facilitate crypto ETF approvals, the regulatory environment remains cautious. The SEC's estimated odds for an XRP ETF approval are around 62% in 2025, reflecting ongoing regulatory challenges and broader institutional adoption uncertainties.
Another factor is the competitive landscape. Other asset managers such as Grayscale and Franklin Templeton have already filed or are expected to file XRP spot ETFs. BlackRock may still be evaluating their momentum and market reception before committing.
Timing considerations also play a role. The SEC deadlines for XRP ETF decisions are approaching in Q4 2025, so BlackRock could still file within that window, potentially using the more recent legal clarity as justification.
Despite these factors, Geraci predicts that BlackRock will launch additional individual altcoin ETFs in the future. The success of the iShares Bitcoin Trust ETF (IBIT), which has cumulative net flows worth $53.65 billion, serves as a testament to BlackRock's expertise in the ETF sector.
However, the risk of missing out on early altcoin ETF market share remains. This approach aligns with cautious asset management practices amid evolving crypto regulations. It is uncertain whether BlackRock and Fidelity will file for these ETFs at the last minute, but the potential for BlackRock to expand its ETF portfolio beyond Bitcoin and Ethereum remains a topic of interest in the financial industry.
Sources:
- Bloomberg
- CoinDesk
- Forbes
- The Block
- Business Insider
- BlackRock, despite the SEC's new ETF approval framework, has yet to file for XRP or Solana spot ETFs, indicating a possible waiting strategy for the SEC's new rules in mid-2025.
- The success of the iShares Bitcoin Trust ETF, managed by BlackRock, suggests that the company could potentially launch additional individual altcoin ETFs in the future, given its expertise in the ETF sector.
- BlackRock's strategic focus remains on Bitcoin and Ethereum ETFs, but the company's hesitation to diversify into altcoins such as XRP and Solana is influenced by factors like regulatory climate, competition, timing, and market uncertainties.
- Other asset managers, like Grayscale and Franklin Templeton, have already filed or are expected to file XRP spot ETFs, and BlackRock may still be evaluating their momentum and market reception before committing to such initiatives.
