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- BlackRock officially confirms it has no plans to launch a spot XRP ETF amid regulatory uncertainty and SEC battle.
- XRP stands at a critical support level of $0.55, with analyst Ali Martinez cautioning that further breakdown could lead to a decline to $0.34.
BlackRock, the world’s largest asset manager, has officially announced that it has no intentions of launching a spot XRP exchange-traded fund (ETF). This disclosure comes from Charles Gasparino, a prominent financial journalist, who shared the information via X, citing sources with direct knowledge of the matter.
Gasparino provided additional insight, emphasizing that the lack of regulatory clarity surrounding XRP stands as a significant factor influencing BlackRock’s decision. The Fox Business journalist pointed to the ongoing Ripple vs. SEC case, highlighting the ambiguous ruling as a deterrent for major money managers like BlackRock to pursue an XRP ETF.
Judge Torres’ classification of XRP in a regulatory gray area, neither fully a security nor entirely outside of this classification, adds complexity to the decision-making process. Gasparino notes that this verdict, subject to appeal, poses a risky proposition for established financial entities considering XRP-based ETFs.
Before BlackRock’s definitive statement, speculation within the cryptocurrency community had been circulating about the potential for an XRP ETF. This speculation was initially fueled by a comment from BlackRock CEO Larry Fink during a Fox Business interview. Fink’s elusive response of “I can’t talk about that!” stirred discussions and raised hopes among investors and analysts.
The approval of Bitcoin spot ETFs by the SEC further heightened interest and optimism within the market about the potential for similar products for other cryptocurrencies, including Ethereum and XRP. However, BlackRock’s decision sheds light on the challenges posed by regulatory uncertainties, especially in the case of XRP.
The XRP Price Action
Amid the broader market correction, Ripple’s native cryptocurrency XRP continues to face some selling pressure. At press time, Ripple XRP is trading 3.5% down at a price of $0.5474 with a market cap of $29.7 billion. With today’s price correction, XRP has extended its weekly losses to more than 8%.
At present, the XRP price is trading at a crucial support junction. Any further selling pressure could lead to a price slide all the way to $0.34.
In the current market scenario, crypto analyst Ali Martinez issues a cautious observation regarding the status of XRP ($XRP). The cryptocurrency is currently facing the challenge of maintaining stability at the critical $0.55 support level.
Martinez suggests that if this support level fails to hold, investors should brace themselves for a potential sell-off scenario that could lead XRP to descend towards the $0.34 mark. This warning serves as a heads-up for traders and investors to monitor the price movements of XRP closely as it approaches this crucial support level.
$XRP is currently grappling to maintain its footing at the crucial $0.55 support level. Should this support fail to hold, be prepared for a possible sell-off scenario that could see #XRP descending toward $0.34! pic.twitter.com/6oKObjpnnm
— Ali (@ali_charts) January 18, 2024
On the other hand, the XRP ledger continues to hit new milestones by recently surpassing a total of 5 million accounts that it hosts.
