BlackRock Avoids XRP ETFs Despite Growing Market

Nate Geraci, president of The ETF Store, views BlackRock's decision to focus on Bitcoin (BTC) and Ethereum (ETH) over XRP as 'highly risky'.

The financial giant has withdrawn $312 million from Coinbase Prime in the past day alone, with $282 million going towards its flagship BTC fund IBIT. The remaining $30.6 million was split between ETHA and ETHB funds.

Geraci believes BlackRock will eventually capitulate and launch additional spot crypto ETFs. He cites two reasons for the company's current stance: scale and strategy.

The XRP ETF market is currently too small, with total net assets of $1.40 billion compared to $98.63 billion for Bitcoin ETFs and $15.13 billion for Ethereum ETFs. BlackRock's digital asset executives have stated that their goal is to help conservative investors gain exposure to the two dominant cryptocurrencies.

The company is effectively allowing competitors to test demand and absorb regulatory risks before entering the market itself, potentially taking the lead with its name behind it.