After Bitcoin and Ethereum, spot ETF applications were made for many altcoins such as XRP and Solana (SOL).
While giants like Grayscale and ProShares are in a fierce race for altcoin ETFs, BlackRock, the largest asset management firm in the US, is not making any moves.
While BlackRock is expected to file an ETF Application for major altcoins like XRP and Solana, the giant company keeps the doors closed to XRP and altcoin ETFs.
While some names indicate that BlackRock will eventually apply for an altcoin ETF, analysts speaking to Coindesk stated that the probability of BlackRock is low for an XRP ETF.
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At this point, analysts have listed five factors behind BlackRock’s cautious approach towards the spot XRP ETF.
Accordingly, the five reasons were listed as follows:
- “Insufficient customer demand for crypto assets other than Bitcoin (BTC) and Ethereum (ETH);
- Regulatory uncertainty surrounding XRP and other altcoins;
- Market saturation due to multiple competing applications;
- The difference between rising price expectations and internal data;
- The majority of XRP trading volume is concentrated in Asia.”
Currently, seven asset management firms, including ProShares, Grayscale, and Franklin Templeton, have applied for a spot XRP ETF in the US.
*This is not investment advice.