BlackRock is focusing only on bitcoin and ethereum rather than entering the spot XRP exchange-traded fund (ETF) market. Industry watchers say the move could be read as a market judgment that other cryptocurrencies do not have sufficient value.

Blockchain outlet U.Today reported on Aug. 27 that Nate Geraci, president of The ETF Store, called BlackRock’s strategy very risky. A major asset manager running about 500 traditional ETFs is effectively signaling to the market that cryptocurrencies beyond bitcoin and ethereum do not offer enough investment value, he said. He added that he still expects BlackRock to ultimately expand its lineup of spot crypto ETF products.

BlackRock’s recent fund flows underscore that choice. On-chain data showed a wallet linked to BlackRock withdrew $312 million from Coinbase Prime over the past day. Of that, $282 million moved to a wallet tied to its flagship iShares Bitcoin Trust ETF (IBIT), while the remaining $30.6 million was split between the iShares Ethereum Trust ETF (ETHA) and the Ethereum Staking ETF (ETHB).

From BlackRock’s perspective, bitcoin and ethereum offer high liquidity and a predictable profit structure. Geraci said BlackRock could eventually change its stance. "BlackRock will change course at some point by launching additional ETFs," he said.

Market size is cited first as a reason BlackRock is not moving immediately into spot altcoin ETFs such as XRP. Total net assets in XRP funds in the United States stand at $1.4 billion. By comparison, spot bitcoin ETFs manage $98.63 billion and spot ethereum ETFs manage $15.13 billion. Net assets in solana funds, also in the altcoin category, are $1.26 billion, while the multi-asset HYPE ETF has $419.48 million and a spot dogecoin ETF totals $12.37 million.

Steven McClurg (스티븐 맥클러그), chief executive of Canary Capital, said BlackRock is unlikely to show interest until net assets in XRP funds launched by existing competitors reach about $3 billion. He said that level would demonstrate systematic demand from major institutional investors.

Another factor is a strategy of focusing more deeply on core assets rather than expanding the product range. BlackRock executives have said their goal is not to stockpile hundreds of altcoins, but to help conservative investors access bitcoin and ethereum. With many traditional finance clients still not having started investing in cryptocurrencies, launching new products in succession could be economically inefficient, they said.

Against that backdrop, competitors are taking the lead in testing demand and absorbing early regulatory risk. Major banks such as Goldman Sachs have begun buying stakes in spot XRP ETFs, but BlackRock has not yet filed even an application with the U.S. Securities and Exchange Commission (SEC).

The key question is whether the spot XRP ETF market can prove the liquidity and maturity needed for BlackRock to enter. If the market secures financial maturity and liquidity, BlackRock could enter at any time, and Geraci said it could even rise to the top within weeks on the strength of its brand. Until then, BlackRock is likely to keep shifting hundreds of millions of dollars into the more familiar bitcoin and ethereum.

Still wild to me that BlackRock is refusing to launch spot crypto ETFs other than btc & eth… Not even an index-based crypto ETF. Given massive success of IBIT, ETHA, & ETHB, they’re basically making a market call that no other crypto assets have enough value IMO. Seems highly…