The SEC recently approved a Bitcoin spot ETF, which has sparked expectations in the market for the launch of similar products for other cryptocurrencies such as Ethereum and XRP. However, senior Fox Business Network (FBN) reporter Charles Gasparino revealed that BlackRock, the world’s largest asset management company, currently has no plans to launch an XRP spot ETF.
Gasparino further explained that the regulatory ambiguity surrounding XRP is a key factor in BlackRock’s decision. In response to the argument made by prominent trader Myles G Investments that “XRP is the only cryptocurrency with regulatory clarity, as the court has defined it as ‘not a security’,” Gasparino countered:
In July last year, Judge Analisa Torres ruled in the lawsuit between Ripple and the SEC regarding whether XRP is a security. She ruled that XRP is an unregistered security when sold to institutional buyers, but the act of selling XRP to retail investors through exchanges does not constitute a security. Gasparino believes that this lack of legal clarity is a barrier for Wall Street giants like BlackRock in creating ETF products for XRP.
Speculation about XRP ETF in recent times
Previously, speculation about an XRP spot ETF was sparked by comments made by BlackRock CEO Larry Fink in an interview with FBN. When asked about the potential XRP ETF, Fink cryptically replied, “I can’t talk about that!” This raised hopes among XRP enthusiasts.
Gasparino emphasized that Fink’s understanding of XRP is limited, unlike his affirmation of ETH.
False news of BlackRock applying for XRP spot ETF
In mid-November last year, a screenshot of a regulatory filing indicated that BlackRock had taken the first step towards launching an XRP ETF, causing a 15% surge in the token’s price. However, Bloomberg analyst Eric Balchunas subsequently confirmed on Twitter that the screenshot was fake, and the price of XRP quickly retraced its gains.
These recent developments have weakened the hopes of US investors for an XRP ETF and intensified bearish sentiment in the token’s market. According to CoinGecko data, XRP was trading at $0.543 at the time of writing, down 1.9% in the past 24 hours.
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