- According to Fox Business reporter, BlackRock is unlikely to support XRP ETF amid ongoing regulatory uncertainty.
- CEO Larry Fink avoids commenting on XRP ETF, citing regulatory uncertainty as a hurdle.
- BlackRock’s reluctance splits the XRP community; viewed as a setback by some, a responsible approach by others.
The world’s largest asset manager, BlackRock, is unlikely to support an XRP exchange-traded fund (ETF) in the near future. This news comes as Ripple Labs, the company behind XRP, continues to battle the Securities and Exchange Commission (SEC) in a landmark lawsuit over the digital asset’s legal status. Fox Business reporter Charles Gasparino broke the news on Twitter, stating, “BlackRock has no plans for a Spot XRP ETF.”
With the SEC lawsuit still ongoing, BlackRock’s decision to hold off on an XRP ETF appears primarily driven by concerns about regulatory ambiguity. Launching an ETF for an asset facing legal challenges could expose the financial giant to significant risks. The firm’s CEO Larry Fink remained tight-lipped on the topic of XRP ETF in a recent interview, stating, “I can’t talk about that.” While CEO Larry Fink declined to comment directly on the matter, sources stated that the ongoing regulatory uncertainty surrounding XRP remains a major hurdle.
At the heart of the issue lies whether XRP is a security or a commodity. Judge Torres’ 2023 ruling that XRP sales on exchanges do not constitute an “investment contract” provided some clarity, but the asset remains in a regulatory gray area. This lack of a definitive classification likely makes XRP a risky proposition for BlackRock, a company known for its cautious approach to investment decisions.
Ripple’s ongoing lawsuit with the SEC could ultimately determine the fate of XRP as a widely accepted investment vehicle. The case outcome will set a precedent for the entire cryptocurrency industry and could pave the way for increased institutional adoption of XRP, including potential ETF listings.
However, the legal battle is far from over. Ripple lawyers recently opposed the SEC’s motion to compel the company to share additional financial information and documents related to its post-complaint XRP sales. This back-and-forth suggests that a final resolution could be months or even years away.
The news of BlackRock’s reluctance towards XRP ETFs has divided the XRP community. While some see it as a setback, others interpret it as a sign that the company is taking a responsible approach to protecting its investors. Ultimately, the future of XRP and its potential for wider adoption remains uncertain, hinging on the outcome of the Ripple lawsuit and the evolving regulatory landscape for cryptocurrencies.
