Thomas Daniels
The investment management giant, BlackRock, has sparked curiosity among cryptocurrency enthusiasts with hints of potentially introducing an ETF based on XRP. Though the company has not officially announced an immediate plan to file for a spot XRP ETF, speculative buzz has grown due to suggestive remarks made by its CEO, Larry Fink, along with the firm’s participation in proposals for other cryptocurrency ETFs.
The ongoing legal confrontation between the SEC and Ripple, the entity behind XRP, casts a shadow of uncertainty over the approval of such an ETF in the near future. In a notable legal development in July 2023, a judgment was passed by a judge in the SEC’s lawsuit, distinguishing XRP’s classification as a non-security when traded on retail exchanges, yet considering it a security in institutional transactions. This lawsuit is progressing, with a trial scheduled for April 23, 2024.
Doubts linger among analysts regarding the SEC’s green light for an XRP ETF. CoinShares’ product chief, Townsend Lansing, pointed out that the approval depends on the SEC’s recognition of XRP as a non-security. Similarly, Scott Johnsson from Van Buren Capital views the approval chances as minimal, suggesting that it might require a shift in the SEC’s leadership to become a reality.
Fink’s evasive reply to queries about an XRP ETF — stating, “I can’t talk about that” — has been taken by the XRP community as a sign that BlackRock might be considering such a move, fueling optimism within the XRP market.
Recent reports, however, indicate that BlackRock is not on the verge of launching a spot XRP ETF, according to insiders. This revelation comes at a time when the cryptocurrency market is witnessing the rise of ETFs for various digital currencies.
The impact of leading financial institutions like BlackRock on the cryptocurrency market is profound, as their statements, decisions, and activities significantly influence market trends and investor confidence.
Even though BlackRock has no immediate plans for a spot XRP ETF, this development adds to the ongoing debate about the practicality and regulatory acceptance of ETFs for a wide array of digital assets.
