BlackRock has ruled out launching spot exchange-traded funds (ETFs) for XRP or Solana (SOL)

The position comes despite the growing buzz in the industry and the recent conclusion of Ripple's long legal battle with the SEC (U.S. Securities and Exchange Commission).

Why is BlackRock stepping away from XRP?

Reports indicate that BlackRock has no “plans” to offer spot ETFs for XRP or its potential Solana ETF. The clarification came just hours after ETF Store president Nate Geraci suggested that the asset management giant could eventually enter the XRP ETF market.

Geraci had previously published that he thought BlackRock was waiting for the end of the Ripple vs. SEC case before applying for the iShares XRP ETF.

Geraci also highlighted the growing institutional traction of Ethereum, citing Matthew Sigel's view that Bitcoin dominance has started to decline as banks, fintechs, and companies adopt stablecoins, many of which will be settled on open-source blockchains like Ethereum.

Low demand beyond Bitcoin and Ethereum

Meanwhile, BlackRock executives have repeatedly emphasized that client interest outside of Bitcoin and Ethereum remains minimal. In December, BeInCrypto reported Robert Mitchnick, head of digital assets at BlackRock, saying there is “very little” demand for other crypto ETFs.

“I don’t think we will see a long list of crypto ETFs. If you think about Bitcoin, it represents about 55% of the market value today. Ethereum is at 18%. The next plausible investable asset is around 3%. It’s not close to reaching that threshold or historical maturity, liquidity, etc.,” said Mitchnick.

In the same vein, Jay Jacobs, head of BlackRock's ETF department, stated that BlackRock does not plan to launch new ETFs focused on altcoins.

Jacobs also emphasized the company's intention to expand the reach of its existing Bitcoin and Ethereum ETFs, which have performed exceptionally well so far.

“We are only at the tip of the iceberg with Bitcoin and especially Ethereum. Only a small fraction of our clients hold IBIT and ETHA, so that’s what we are focused on (instead of launching new altcoin ETFs),” reported ETF analysts Eric Balchunas, citing Jay Jacobs' statement at the time.

Samara Cohen, BlackRock’s head of ETF and Index Investments, told Bloomberg that for BlackRock, only Bitcoin and Ether meet that criterion for now, in terms of investment capacity considerations and client considerations.

“… I think it will take a little while before we see anything else,” Cohen said in an interview with Bloomberg.