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 reporter Charles Gasparino revealed that BlackRock 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 defines it as ‘not a security’,” Gasparino countered:
In July of last year, Judge Analisa Torres ruled in the lawsuit between Ripple and the SEC regarding whether XRP is a security, stating that XRP is an unregistered security when sold to institutional buyers, but the sale of 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 an XRP ETF in recent times
Previously, BlackRock CEO Larry Fink’s comments during an interview with Fox Business Network sparked speculation about an XRP spot ETF. When asked about a potential XRP ETF, Fink cryptically responded, “I can’t talk about that!”, raising hopes among XRP enthusiasts.
Gasparino emphasized that Fink’s knowledge of XRP is limited compared to his affirmation of ETH.
Fake news of BlackRock applying for an XRP spot ETF
In mid-November last year, a screenshot of a regulatory document showed that BlackRock had taken the first step towards launching an XRP ETF, causing the token’s price to surge by 15%. However, Bloomberg analyst Eric Balchunas subsequently confirmed on Twitter that the screenshot was forged, and the price increase of XRP was completely reversed.
These recent developments have dampened hopes among US investors for an XRP ETF and intensified bearish sentiment in the token market. CoinGecko data shows that XRP is currently trading at $0.543, a decrease of 1.9% in the past 24 hours.