- BlackRock has decided to halt its plans for a spot XRP exchange-traded fund (ETF) due to ongoing regulatory uncertainties and the unclear legal status of XRP.
- Ripple, the company behind XRP, faces challenges in its operations, including a pause in immediate IPO plans and a legal battle with the SEC, while XRP experiences a downtrend in the cryptocurrency market.
In a surprising turn of events, BlackRock has decided to shelve its plans for a spot exchange-traded fund (ETF) based on XRP, citing ongoing regulatory uncertainties and the murky legal status of the cryptocurrency. Fox Business reporter Charles Gasparino broke the news on X, revealing inside information from sources with direct knowledge of the matter.
The decision follows speculative comments from BlackRock CEO Larry Fink during a Fox Business interview. When asked about the potential launch of a spot XRP ETF, Fink emphatically denied discussing it, stating, “I can’t talk about that!” This comes despite BlackRock’s prior interest in the digital currency space, evident in the launch of a spot Bitcoin ETF, the iShares Bitcoin Trust, and a filed application for a spot Ether ETF, named the iShares Ethereum Trust.
Ripple, the company behind XRP, is currently navigating a challenging regulatory landscape, notably with the ongoing SEC-Ripple court battle. The SEC recently urged the court to mandate Ripple to provide financial records and “post-complaint contracts” related to institutional sales from 2022 to 2023.
Ripple CEO Brad Garlinghouse, acknowledging the regulatory hostility in the U.S., initially considered international markets for the company’s Initial Public Offering (IPO). However, the latest development reveals a shift in strategy as Ripple now opts for a more measured approach, putting a temporary pause on immediate IPO plans.
While Ripple’s XRP Ledger (XRPL) achieved a milestone with its highest-ever monthly transaction volume, reaching 677.16 billion XRP, the broader cryptocurrency market presents challenges. XRP faces a downtrend, with its price plummeting to $0.53. The Relative Strength Index (RSI) stands at 35.58, indicating bearish momentum. XRP hovers below its 20-day moving average (MA), and the price candles touch the lower Bollinger Band, signaling potential further downturn or increased volatility.
As BlackRock hits the pause button on XRP ETF dreams, the fate of Ripple and XRP remains uncertain in the ever-evolving regulatory landscape, adding another layer of complexity to the crypto market’s dynamics.
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