BlackRock’s XRP ETF Holdout: 5 Brutally Honest Reasons Why They’re Sitting This One Out

Wall Street’s ETF machine is firing on all cylinders—except when it comes to XRP. Here’s why the world’s largest asset manager won’t touch this crypto with a ten-foot prospectus.

1. Regulatory limbo means legal landmines

Until the SEC finishes playing whack-a-mole with Ripple’s lawyers, BlackRock’s compliance team won’t risk the paperwork.

2. Liquidity? More like liability

XRP’s trading volume looks healthy—until you realize half of it could vanish if one whale sneezes.

3. The ‘institutional-grade’ paradox

Pension funds won’t touch assets that still get mentioned in the same breath as ‘meme coin’ Twitter threads.

4. Opportunity cost math

Why bother with XRP when Bitcoin ETFs are already printing management fees like the Federal Reserve prints… well, you know.

5. The silent treatment strategy

BlackRock knows the crypto crowd’s playbook—sometimes the best trade is letting retail investors FOMO first and clean up later.

Funny how ‘disruptive’ assets still beg for Wall Street’s approval. Maybe decentralization wasn’t the endgame after all.

BlackRock, the world’s largest asset manager with AUM of $11.6 trillion, has been leading the charge with Bitcoin and ethereum ETFs, but when it comes to XRP, they seem to be in no rush. Despite growing interest and the recent launch of institutional futures, BlackRock hasn’t filed for an XRP ETF. 

So what’s holding them back? Let’s break it down.

1. Regulations Still Unclear

The biggest reason is regulatory uncertainty. Even though a U.S. court ruled that XRP isn’t a security when traded on exchanges, the SEC hasn’t fully accepted this. In fact, ETF decisions continue to be pushed further, some now expected in June or even October 2025. 

BlackRock is known for playing it safe, they won’t file for an XRP ETF until regulators draw a clear line between securities and commodities in crypto.

As one X user smartly pointed out, clarity might only come once major legislation, like the Stablecoin Act, is passed.

2. Derivatives Market Still Growing

For big institutions, futures markets are a key tool for managing risk. While Bitcoin and Ethereum have mature futures markets with massive volume, XRP only just launched CME futures on May 19, 2025, with $19 million in first-day volume.

That’s a strong start, but not enough yet. BlackRock and others want to see more consistent trading volume over time. 

3. Liquidity Still Needs to Grow

XRP has strong market depth, but for an ETF to function smoothly, it needs stable liquidity that can handle billions in inflows and outflows. Until XRP hits that level of maturity, ETF approval remains unlikely.

4. Focus on Winning Plays

BlackRock is currently focused on its Bitcoin and Ethereum ETFs, which are performing well. Rather than spreading its efforts thin, it’s doubling down on what’s working.

5. Strategic Timing Is Everything

Finally, it could all come down to timing. With XRP and solana leading ETF application discussions, BlackRock might be waiting to see how the SEC handles current filings before joining the race. 

It’s a waiting game for more demand, stronger liquidity, and a green light from regulators.

So, while XRP fans might be eager, BlackRock is playing the long game.