After 10 years of repeated rejections, the U.S. Securities and Exchange Commission (SEC) has finally approved a Bitcoin spot ETF. The move has raised expectations for the launch of other cryptocurrency ETFs such as Ethereum and XRP.
Recently, according to a report by Fox Business Network (FBN) senior reporter Charles Gasparino, people familiar with the matter revealed that BlackRock, the world’s largest asset management company, currently has no plans to launch an XRP spot ETF. This news shows that although XRP is one of the important assets in the cryptocurrency market, BlackRock has no clear plans to launch an exchange-traded fund related to XRP. This news may have a certain impact on XRP holders and investors’ investment plans. As the world's largest asset management company, BlackRock's decision has impacted the market. Gasparino further explained that the key factor in BlackRock's decision was the regulatory ambiguity surrounding XRP. He responded to the argument of well-known trader Myles GInvestments: “XRP is the only cryptocurrency with regulatory clarity, and the courts have defined it as ‘not a security.’” He countered that during the appeal of the case, Judge Torres said that XRP is somewhat like a security and somewhat not.
Last July, Judge Analisa Torres made a ruling in the lawsuit between Ripple and the SEC regarding whether XRP is a security. She determined that XRP was an unregistered security when it was sold to institutional buyers. However, the sale of XRP to retail investors through an exchange does not constitute a security. According to Gasparino, this legal ambiguity is an obstacle faced by Wall Street giants such as BlackRock in creating XRP ETF products. This also means that while XRP is recognized as a security in some respects, it is not in others, complicating the creation of ETFs.
Recent speculation about XRP ETF
BlackRock CEO Larry Fink’s remarks in an interview with Fox Business Network triggered some speculation in the market about XRP spot ETF. When asked about the possibility of launching an XRP ETF, Fink responded “I can’t talk about that!”, sparking hope and excitement among XRP enthusiasts.
In this regard, Gasparino emphasized Fink’s limited understanding of XRP and his affirmation of ETH.
There are a few things to keep in mind regarding my question to Larry Fink regarding the launch of an $XRP ETF and his informal response. First, Larry has little to no knowledge of the existence of $XRP as a cryptocurrency, and he is more familiar with ETH’s place in the crypto ecosystem. Still, we can't read too much into his answer, as that could change soon.
BlackRock applied for XRP spot ETF fake news
In mid-November last year, a screenshot of a regulatory filing showed that BlackRock had taken the first step to launch an XRP ETF, leading to the token The price soared by 15%. However, Bloomberg analyst Eric Balchunas immediately posted an article on X confirming that the screenshot was fake, and XRP gave up all its gains.
These recent developments have dampened U.S. investors’ hopes for XRPETF, exacerbating bearish sentiment in the token market. CoinGecko data shows that XRP was temporarily trading at $0.543 before the deadline, falling 1.9% in the past 24 hours.
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