BlackRock's Delay in Launching a Spot XRP ETF: Background, Perspective, and Consequences
In a recent development, BlackRock, one of the world's largest asset managers, has announced that it has no immediate plans to file for a U.S. spot XRP Exchange Traded Fund (ETF). This decision comes as several other major U.S. asset managers, including ProShares, Grayscale, 21Shares, Franklin Templeton, and CoinShares, have filed applications and are actively pursuing approvals for spot XRP ETFs.
The regulatory decisions for these applications are expected in October 2025, marking a potential wave of XRP ETF launches. Notably, ProShares has already launched the Ultra XRP ETF in July 2025, offering leveraged exposure to XRP futures. Grayscale and 21Shares have also filed applications, with decisions due on October 18 and 19 respectively.
The surge in interest in XRP ETFs can be attributed to the settlement of Ripple's long-running legal battle in mid-2025, which cleared a major roadblock for XRP ETF products. This settlement has significantly improved the outlook for approval, prompting a wave of potential XRP ETF launches.
However, BlackRock's digital team has stated that the company's decision is influenced by various factors, including client demand, regulation, competition, strategy, and market geography. The company prefers a wait-and-see approach before entering the spot XRP ETF market.
It's worth noting that BlackRock's clients have shown a strong preference for Bitcoin and Ethereum, with XRP lagging behind. Additionally, XRP trading sees significant activity in Asia, where BlackRock's ETF presence is less strong.
Despite the potential returns, the operational complexity of XRP ETFs may not be worth the investment for BlackRock at this time. The company is focusing its efforts on other crypto assets like bitcoin and ether ETFs.
The SEC is currently reviewing multiple XRP ETF applications, with decisions expected by late 2025. The settled Ripple-SEC case has opened the door for other entrants in the XRP ETF market, but BlackRock's decision not to pursue a spot XRP ETF is not a direct response to this development.
[1] CoinDesk. (2025). ProShares Launches Ultra XRP ETF, Grayscale and 21Shares File for XRP ETFs. [online] Available at: https://www.coindesk.com/business/2025/07/26/proshares-launches-ultra-xrp-etf-grayscale-and-21shares-file-for-xrp-etfs/
[2] CoinDesk. (2025). BlackRock Remains Cautious on XRP ETFs, Despite Competitors' Push. [online] Available at: https://www.coindesk.com/business/2025/08/10/blackrock-remains-cautious-on-xrp-etfs-despite-competitors-push/
[3] CoinDesk. (2025). Ripple Settles SEC Lawsuit, Clearing Path for XRP ETFs. [online] Available at: https://www.coindesk.com/business/2025/06/24/ripple-settles-sec-lawsuit-clearing-path-for-xrp-etfs/
[4] CoinDesk. (2025). Dozens of Asset Managers Pursue XRP-Related Investment Vehicles. [online] Available at: https://www.coindesk.com/business/2025/02/10/dozens-of-asset-managers-pursue-xrp-related-investment-vehicles/
[5] CoinDesk. (2025). SEC Reviewing Multiple XRP ETF Applications. [online] Available at: https://www.coindesk.com/business/2025/09/15/sec-reviewing-multiple-xrp-etf-applications/
[1] Despite ProShares' launch of the Ultra XRP ETF and multiple applications from Grayscale, 21Shares for XRP ETFs, BlackRock has expressed cautious sentiment towards the investment, citing factors like client demand, regulation, competition, strategy, and market geography.
[2] Alongside exploring Bitcoin and Ethereum ETFs, BlackRock's digital team has emphasized a wait-and-see approach before entering the spot XRP ETF market, acknowledging the operational complexity that may not offer sufficient returns at this time.
