Rumour has it that multi-trillion-dollar asset manager BlackRock has stated it would not be creating a spot XRP ETF anytime soon, which dashing any hopes.
This comes after the U.S. Securities and Exchange Commission (SEC) finally approved the first spot Bitcoin ETFs after a decade of repeated rejections.
No Immediate Plans For An XRP ETF — BlackRock
BlackRock recently successfully launched one of the most hotly anticipated products in recent Wall Street memory, spot Bitcoin ETFs. BlackRock also has a filing for a spot Ethereum ETF with U.S. regulators, which caused many crypto community members on X (formerly Twitter) to express hope the world’s largest money manager may also look to issue an XRP product in the future.
However, renowned Fox journalist Charles Gasparino has revealed BlackRock is not eyeing a spot market XRP ETF, citing individuals privy to the matter. According to Charles, the regulatory ambiguity surrounding XRP is a key aspect of BlackRock’s decision.
The reporter highlighted the July ruling by Judge Analisa Torres where she declared XRP is an unregistered security when sold to institutional buyers but isn’t when it’s purchased by anyone else as a barrier for Wall Street giants like BlackRock to create ETF products for XRP.
Though the July ruling was deemed a major win for Ripple, we are now in this confused state where XRP is an unregistered security sometimes. The lack of legal clarity, coupled with the fact that the SEC will likely appeal the ruling, makes it risky for prominent asset managers to launch XRP ETFs, Charles asserts.
Previous Speculation On XRP-Based ETF
Speculation on a spot XRP ETF was previously sparked by a remark from BlackRock boss Larry Fink during a recent interview with Fox Business. When asked about a potential XRP ETF, Fink’s cryptic response of “I can’t talk about that!” stirred hopes among XRP enthusiasts and pundits.
In November 2023, a regulatory filing suggested BlackRock had taken a first step toward launching an XRP ETF, sending the price of the token jumping by over 10%. However, XRP gave up all the gains once it was reported the filing was bogus.
These recent developments have dampened hopes for U.S. investors getting an XRP ETF, contributing to the bearish sentiment in the coin’s market. XRP is presently changing hands for $0.52, a 4.7% drop over the last 24 hours.
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