Ripple News: BlackRock’s Lack of XRP ETF Launch Plans – Key Factors Explained

BlackRock, a well-known global investment giant and the current issuer of spot Bitcoin ETFs, has recently made it known through a tweet from Fox Business senior reporter Charles Gasparino that they have no immediate intentions of introducing a spot XRP ETF.

This announcement comes at a time when the Securities and Exchange Commission (SEC) is embroiled in a legal battle against Ripple, the issuer of XRP, since December 2020. In the latest hearing of the lawsuit, Judge Torres categorized XRP as a “regulatory gray area,” adding to the already complex landscape of regulatory uncertainty.

Ripple’s CEO, Brad Garlinghouse, hinted at significant developments for both the cryptocurrency industry and the company during a recent CNBC interview. Garlinghouse spoke about potential groundbreaking advancements that could take place by 2024. This follows Ripple’s recent legal victory, where the court ruled that XRP does not qualify as an investment contract, effectively defeating the SEC’s attempt to classify it as a security.

However, BlackRock’s decision not to prioritize the launch of a spot XRP ETF aligns with the current market sentiment surrounding XRP. Technical analyst Ali Martinez has highlighted the struggles faced by XRP in maintaining support at the $0.55 level. A breach below this level could potentially trigger a sell-off, potentially driving XRP’s price down to $0.34. It is possible that BlackRock is taking the time to thoroughly consider the volatility and risk factors associated with XRP before moving forward with an ETF.

As the SEC’s lawsuit against Ripple continues and the regulatory status of XRP remains uncertain, major players in the financial industry, such as BlackRock, are keeping their plans private and taking the necessary time to evaluate their actions.

Tags: Ripple (XRP)