Fox Business senior reporter Charles Gasparino’s insider tweet has announced that BlackRock, a global investment giant and presently the issuer of spot Bitcoin ETFs, has no plans to introduce a spot XRP ETF.
Probable Reasons Why?
The news comes when the Securities and Exchange Commission has been entangled in its legal battle against Ripple, the issuer of XRP, since December 2020. As per the latest lawsuit hearing, Judge Torres had classified XRP as a “regulatory gray area, ” adding to the complexity of regulatory uncertainty.
During a recent CNBC interview, Ripple’s CEO, Brad Garlinghouse, hinted at significant moves for 2024. Garlinghouse brought up potential groundbreaking developments for both the crypto industry and the firm. This follows Ripple’s legal victory, where the court ruled that XRP isn’t an investment contract, marking the defeat of SEC in trying to prove it as a security.
However, BlackRock’s decision not to focus on launching a spot XRP ETF also corresponds with the prevailing market sentiment around XRP. Technical analyst Ali Martinez highlighted the XRP’s struggle to maintain support at $0.55. A breach below this level could trigger a potential sell-off, potentially driving XRP to $0.34. Maybe because of such volatility and risk factors, BlackRock is still taking time to consider launching XRP ETFs.
As the SEC vs Ripple lawsuit continues and XRP’s regulatory status remains unclear, significant players in the financial industry, like BlackRock, keep their plans private, taking time to decide on their actions.
