Asset management firm BlackRock has hinted at the possibility of launching an XRP-based exchange-traded fund (ETF), sparking interest within the crypto community.
The company has not officially confirmed its plans for an instant spot XRP ETF filing, but speculation has increased following BlackRock CEO Larry Fink's cryptic comments and the company's involvement in other crypto ETF proposals. ing.
As the U.S. Securities and Exchange Commission (SEC) continues its legal battle against Ripple, the company behind XRP, there are questions about its chances of approval soon.
In July 2023, the judge overseeing the SEC case ruled that XRP is not classified as a security when traded on retail exchanges, but is classified as a security when sold to institutional investors. handed down a judgment. Legal proceedings are ongoing and trial is scheduled for April 23, 2024.
However, analysts are skeptical about the prospects for XRP ETF approval. Townsend Lansing, head of product at CoinShares, emphasized that the viability of an XRP ETF depends on whether the SEC grants XRP non-security status.
Scott Johnson, general partner at Van Buren Capital, echoed this sentiment, calling approval “very unlikely” and suggesting a change in SEC leadership may be necessary. did.
Fink's cautious “I can't talk about that” response to inquiries about the XRP ETF was interpreted by XRP enthusiasts as a potential indicator that BlackRock is at least considering the idea, and This instills optimism in the market.
Recent reports citing sources with direct knowledge of the matter suggest that BlackRock has no immediate plans for a spot XRP ETF. This disclosure comes at a dynamic time for the cryptocurrency market, especially regarding the emergence of ETFs for various digital assets.
Major financial institutions have great influence in the virtual currency market. Statements, decisions, and actions by industry giants like BlackRock have ripple effects on market sentiment and investor confidence.
BlackRock's lack of immediate plans for a Spot XRP ETF at this time is not definitive for the future, but progress is being made regarding the feasibility and regulatory viability of an ETF for a variety of digital assets. This makes the discussion inside complicated.
