Technology

No Immediate Plans in Sight – Crypto News

Published

1 year ago

January 18, 2024

Dripp

BlackRock, the world’s largest asset manager, has yet to show any clear intentions of launching a spot XRP exchange-traded fund (ETF), per sources close to the matter. This development surfaces amid the U.S. Securities and Exchange Commission’s (SEC) recent approval of a Bitcoin spot ETF. This decision was met with a divided vote within the SEC leadership.

SEC’s Divided Stance Echoes in the Market

The approval of the Bitcoin spot ETF witnessed a split within the SEC, with three of the five commissioners voting in favor. Commissioners Hester Peirce, Mark Uyeda, and Chairman Gary Gensler supported the motion, while Commissioners Caroline Crenshaw and Jaime Lizárraga opposed it.

This division highlights the varying perspectives within the SEC regarding cryptocurrency ETFs, casting a shadow of uncertainty over the likelihood of approval for other crypto ETFs like XRP.

Challenges in Approving an XRP ETF

Consequently, legal expert Bill Morgan emphasized the critical role of SEC Chairman Gary Gensler in the approval process. Gensler, known for his cautious stance on cryptocurrencies, voted in favor of the Bitcoin ETF only after legal setbacks for the SEC. This reluctant approval and the opposing views within the SEC suggest that the path for an XRP ETF could be fraught with challenges.

The cryptocurrency market closely monitors XRP’s performance in light of these developments. Currently, XRP is struggling to maintain its crucial support level at $0.55. Market analyst Ali highlights the potential risks, noting that a break below this level could lead to a significant sell-off, potentially driving the price down to $0.34. Despite the uncertainty surrounding Ripple and its interaction with government bodies, XRP has shown resilience, giving traders confidence.

BlackRock CEO’s Limited Awareness of XRP

Concurrently, Fox Business journalist Charles Gasparino reported that BlackRock CEO Larry Fink has limited knowledge of XRP, suggesting that the asset manager’s foray into an XRP ETF might be more speculative than anticipated. This revelation followed Gasparino’s interview with Fink, where the CEO remained non-committal about BlackRock’s plans regarding an XRP ETF. The XRP community has reacted strongly to these comments, with many challenging that Fink is ill-informed about XRP.

Despite the immediate challenges, XRP investors and analysts remain engaged, watching for signs that could indicate the cryptocurrency’s future trajectory. The current climate suggests that while the path forward for XRP and its potential ETF is uncertain, the community’s interest and the ongoing debate within regulatory bodies will continue to shape the conversation around cryptocurrency ETFs.