BlackRock has ruled out the possibility of launching ETFs for XRP or Solana (SOL) in the near future.
This view was expressed despite ongoing industry discussions and the recently concluded lengthy legal battle between Ripple and the US Securities and Exchange Commission (SEC).
Why BlackRock Avoids XRP
BlackRock is reportedly not planning to provide XRP spot ETFs or potential Solana ETF. This clarification came just hours after ETF Store Chairman Nate Geraci suggested that the asset management giant might eventually enter the XRP ETF market.
Earlier, Geraci had posted that he believed BlackRock was waiting for the long-standing Ripple and SEC lawsuit to conclude before filing for an iShares XRP ETF.
Geraci also highlighted Ethereum's increasing institutional attraction, citing Matthew Sigel's view that BTCD has begun to decline as banks, fintech companies, and enterprises 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 customer interest beyond Bitcoin and Ethereum remains very low. In December, BeInCrypto reported that Robert Mitchnick, Head of Digital Assets at BlackRock, said there was "very little" demand for other crypto ETFs.
"I don't think we'll see a long list of crypto ETFs. If you think about Bitcoin, it represents about 55% of the current market capitalization. Ethereum is 18%. The next viable investment asset is around 3%. It hasn't reached that threshold or has a history of maturity, liquidation, etc.," Mitchnick said.
Similarly, Jay Jacobs, BlackRock's ETF division head, stated that BlackRock has no plans to launch any ETFs focused on new altcoins.
Jacobs also emphasized the company's intention to expand the scope of existing Bitcoin and Ethereum ETFs, which have been performing very well so far.
"We're just at the tip of the iceberg with Bitcoin and especially Ethereum. Only a small portion of our clients own IBIT and ETHA, so that's what we're focusing on (versus launching new altcoin ETFs)," ETF analysts Eric Balchunas reported, citing Jay Jacobs' statement at the time.
Samara Cohen, the company's Head of ETF and Index Investing, told Bloomberg that for BlackRock, only Bitcoin and Ether currently meet the standards for investment potential and customer considerations.
"... I think it will be a long time before we see anything else," Cohen said in an interview.
Meanwhile, Balchunas agreed that BlackRock might see little motivation to expand beyond its two crypto ETFs.
He believes the company is unlikely to pursue a crypto ETF based on an index that could include XRP this year, due to diminishing returns from expanding its product portfolio.
While BlackRock's perspective may be a cautious, data-driven decision, it could also be a missed opportunity, but only time will tell.
