• 24 June, 2024
News

Blackrock and Grayscale Eye XRP ETF Launch Amid SEC Ripple Verdict

Exchange-traded funds (ETFs) focused on cryptocurrencies have been a topic of keen interest in the financial market, especially following recent developments involving major players like Blackrock and Grayscale. Reports suggest that these industry giants could play a pivotal role in introducing an XRP ETF, potentially aligning with the resolution of the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

In a recent online video, prominent cryptocurrency influencer Ben Armstrong shared insights from the crypto community. Last year’s court ruling, which classified XRP as a non-security, has significantly raised the likelihood of an XRP ETF coming to fruition. This legal clarity has ignited renewed enthusiasm among XRP supporters, who see this as a turning point following Ripple’s contentious legal struggle with the SEC.

A notable development from Grayscale Investments has been the reinstatement of XRP in its Grayscale Digital Large Cap (GDLC) Fund. After a two-year pause due to the SEC’s lawsuit against Ripple, this move marks a significant shift in the fund’s strategy. Grayscale has dedicated about $9.6 million to XRP, accounting for 2.54% of its $378.5 million GDLC Fund.

Despite Grayscale’s strategic decision to bring XRP back into its Digital Large Cap Fund, the market response regarding XRP’s price has been tepid. The reintroduction of XRP into Grayscale’s portfolio has fueled discussions about the potential of an XRP ETF. However, the realization of such a financial product remains in a state of uncertainty. XRP continues to navigate the challenges of maintaining consistent growth despite an overall positive trend in the broader cryptocurrency market.

In an interview with Bloomberg, Steve McClurg, co-founder and Chief Investment Officer at Valkyrie Funds, touched upon the burgeoning interest in cryptocurrency ETFs. He expressed optimism about the launch of these funds, particularly in the wake of anticipated Bitcoin spot ETFs. While not confirming specific plans, McClurg’s statements underscored the growing appetite for diverse crypto investment vehicles.

Valkyrie Funds is poised to launch a Bitcoin ETF, pending regulatory approval. However, McClurg’s suggestion that ETFs based on Ethereum and Ripple could follow has captured significant attention in the crypto community.

Observing recent market dynamics, McClurg is confident about the approval of these ETFs. He pointed to Grayscale’s decision to reintegrate XRP into their publicly traded trust as a sign of the increasing demand for varied crypto investment solutions. While Valkyrie has not officially announced plans for Ethereum or Ripple ETFs, the market’s readiness for such products seems apparent.

McClurg views potential Ethereum and Ripple ETFs as investment tools, more oriented toward the retail market. These ETFs could provide a more accessible route for new investors outside the cryptocurrency domain. This increased accessibility could be crucial in broadening the adoption and utilization of these digital assets among a wider audience.

XRP’s value has been experiencing a downward trend, currently trading at $0.5555. This represents a 2.05% decrease over the last 24 hours, signaling a bearish sentiment in the market. Ranking 6th on CoinMarketCap, XRP maintains a live market capitalization of around $30 billion. Despite the dip, trading volumes remain high at $1.7 billion, indicating that investor interest in XRP is still substantial. Over the past few days, XRP has struggled to break through the $0.60 resistance level, consistently trending below this mark.

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