Asset management firm BlackRock is sparking interest within the cryptocurrency community by hinting at the potential launch of an XRP-based exchange-traded fund (ETF).
Although the company has not officially confirmed its plans to offer a spot XRP ETF, speculation has increased following vague comments from BlackRock CEO Larry Fink and the company's involvement in other cryptocurrency ETF proposals.
The US Securities and Exchange Commission (SEC)'s ongoing legal battle against Ripple, the company behind XRP, has raised doubts about possible approval soon.
In July 2023, the judge presiding over the SEC lawsuit ruled that although XRP is not classified as a security when traded on retail exchanges, it holds that status when sold to institutional buyers. Legal proceedings are ongoing, and the trial is scheduled for April 23, 2024.
However, analysts are skeptical about the prospects of the XRP ETF receiving approval. Townsend Lansing, head of product at CoinShares, emphasized that the viability of an XRP ETF hinges on the SEC recognizing the non-security status of XRP.
Scott Johnson, general partner at Van Buren Capital, echoed that sentiment, calling the likelihood of approval “very slim” and suggesting it might require a change in leadership at the SEC.
Fink's cautious response to inquiries about the
Recent reports citing sources with direct knowledge of the matter indicate that BlackRock has no immediate plans for a spot XRP ETF. This revelation appears during a dynamic period for the cryptocurrency market, especially regarding the emergence of ETFs for various digital assets.
The influence of major financial institutions on the cryptocurrency market is significant. The statements, decisions and actions taken by industry giants like BlackRock have a ripple effect on market sentiment and investor confidence.
While BlackRock's current lack of immediate plans for a spot XRP ETF does not definitively define the future, it adds complexity to ongoing discussions about the feasibility and regulatory feasibility of ETFs for a variety of digital assets.
