The main asset manager, which is already listing Bitcoin and Ethereum ETFs, confirmed to The Block on Friday that it currently has no plans to file applications for either of the two products. This decision comes after Thursday's agreement between Ripple and the SEC to withdraw appeals, putting an end to a case initiated in 2020.
Initially, industry analysts speculated that the asset manager might have been waiting for legal uncertainty to dissipate before applying for a BlackRock XRP ETF. However, the firm's statement demonstrates that this was not the case.
Nevertheless, Nate Geraci, president of NovaDius Wealth, criticized the asset manager's limited focus on Bitcoin and Ethereum. He warned that BlackRock risks losing market share to competitors as the cryptocurrency ETF sector evolves.
Eric Balchunas of Bloomberg Intelligence questioned where the ETF expansion would stop if XRP were included. He referenced assets like Solana and Tron, questioning whether the asset manager would also apply for an ETF for these other cryptocurrencies.
Geraci responded that the ETF market is a "hugely mobile target" and expressed surprise that BlackRock was not actively defending its leadership position in this category.
Community reactions were varied. Cam from CryptoNews_eth suggested that BlackRock might not see sufficient customer demand for an XRP ETF. He noted recent increased interest in Litecoin and XRP in Asian markets.
Others, like @xrpBreezy, highlighted the longevity of XRP as a reason why BlackRock might consider applying for this ETF. According to Breezy, XRPL has existed more than twice as long as Solana and Tron. Additionally, it maintains a high market position despite regulatory challenges.
Meanwhile, the SEC is reviewing multiple XRP ETF applications from companies like ProShares, 21Shares, Canary, and Bitwise.