BlackRock, the world's largest asset manager, has reportedly confirmed that it has no plans to launch a spot XRP exchange-traded fund (ETF).
Charles Gasparino, a prominent financial journalist, shared this news via X, citing sources with direct knowledge of the matter.
Regulatory ambiguity?
Gasparino further elaborated that the lack of regulatory clarity surrounding XRP is a major factor in BlackRock's decision.
The Fox Business journalist pointed to the ambiguous ruling in the ongoing Ripple vs. SEC case as a deterrent for major money managers like BlackRock to engage with XRP in the form of an ETF.
According to Gasparino, the ruling by Judge Torres categorizes XRP as being in a regulatory gray area - neither fully a security nor completely outside of this classification.
The complexity of this verdict, compounded by the fact that it is subject to appeal, makes it a risky venture for established financial entities to explore XRP-based ETFs, the reporter argues.
Previous speculation on an XRP ETF
Prior to BlackRock's decision, there was considerable chatter within the cryptocurrency community about the potential for an XRP ETF.
This speculation was sparked by a comment from BlackRock CEO Larry Fink during a Fox Business interview. When asked about an XRP ETF, Fink's elusive response of "I can’t talk about that!" fueled discussions and hopes among investors and analysts.
This interest was further buoyed by the approval of Bitcoin spot ETFs by the SEC, which led to optimistic views from various market players about the possibility of similar products for other cryptocurrencies like Ethereum and XRP.
Valkyrie Funds’ co-founder, Steve McClurg, expressed such a view in a Bloomberg interview.
Arman Shirinyan
