XRP Coin Crashes Badly as BlackRock Denies Plans for XRP Spot ETF
In a blow to XRP cryptocurrency investors, insider sources from BlackRock have confirmed that the asset management giant has no plans to launch an XRP-focused spot exchange-traded fund (ETF). Speculation had been rife after BlackRock CEO Larry Fink’s recent comment on the topic left the possibility open.
However, Fox Business reporter Charles Gasparino has now dismissed these speculations, stating that insiders with knowledge of the matter have made it clear that BlackRock does not intend to introduce an XRP spot ETF. Gasparino’s revelation has left many questioning why Fink failed to deny the rumors during his latest interview, leading to increased frustration among XRP enthusiasts.
The impact of this news was quickly felt in the market, as the trade price of XRP plummeted by nearly 6% within a couple of hours. However, the coin managed to regain some ground later, as shown in the XRP trade price graph.
This development comes in the wake of Ripple CTO David Schwartz pitching the idea of utilizing the XRPL blockchain for Franklin Templeton, a prominent $1.3 trillion asset management firm. Ripple Labs, the backend developer behind XRPL, offers international payment services through its XRPL network, catering to businesses of all sizes.
It is essential to note that Ripple has been embroiled in a legal battle with the United States Securities and Exchange Commission (SEC) since December 2020. The SEC accused Ripple of utilizing XRP as an unregistered security token in its payment services. However, a court ruling in Q3 2023 declared that XRP was not a security token, yet the legal battle between Ripple and the SEC is ongoing.
As this news reverberates throughout the cryptocurrency community, investors are left to reassess their positions, seeking clarity amid the uncertainty surrounding the future of XRP and its potential for mainstream adoption.
In a market heavily influenced by regulatory actions and institutional participation, the fate of XRP hangs in the balance. XRP proponents are eagerly awaiting a resolution to the ongoing legal battle, hoping for a favorable outcome that could uplift the coin’s prospects.
While BlackRock’s denial of an XRP spot ETF deal may have caused a temporary setback for XRP, the cryptocurrency market is no stranger to volatility. Investors will closely monitor the developments in the legal proceedings and keep a watchful eye on any potential shifts in sentiment towards XRP.
As the cryptocurrency landscape continues to evolve, it remains crucial for market participants to stay informed and exercise caution when navigating this highly dynamic and unpredictable industry.
