While BlackRock, the world's largest asset management firm, has been highly successful with Bitcoin and Ethereum ETFs, it remains cautious about launching an XRP ETF. BlackRock's Bitcoin ETF has surpassed $30 billion in assets, and its Ethereum ETF has achieved $1 billion within two months of its launch.
Despite Ripple resolving most of its legal disputes with the US Securities and Exchange Commission (SEC), XRP still carries uncertainty in the eyes of major financial institutions. For companies like BlackRock, legal clarity is a crucial factor.
BlackRock has outlined three key criteria for ETF launch decisions: high demand, trading volume, and clear legal status. Currently, only Bitcoin and Ethereum meet these standards, while XRP has not yet fully complied.
BlackRock is observing the market and regulatory responses by watching competitors like Grayscale and Franklin launch XRP-related products first. This cautious approach has been a successful strategy for BlackRock.
In 2023, rumors about a fake BlackRock XRP ETF application made headlines. BlackRock had to officially deny any connection, which made them even more cautious about entering XRP-related businesses.
While Bitcoin and Ethereum account for about 70% of the entire cryptocurrency market, XRP's market share remains relatively low. This is insufficient in terms of liquidity and institutional investor interest for BlackRock to launch a new ETF.
Some analysts predict that potential crypto-friendly regulations might be introduced in the US by 2025 due to political changes. If such changes occur, XRP and Solana cryptocurrencies might see ETF approvals by the end of 2025, and BlackRock is expected to enter the market when regulations become clearer and demand strengthens.
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