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BlackRock Hits Pause on XRP ETF Dreams Amid Regulatory Ripple

2min Read

Uncover the reasons behind BlackRock’s sudden halt on its XRP ETF, highlighting the shifting tides in crypto regulations.

XRP

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  • BlackRock has abandoned the XRP ETF initiative.
  • Amid legal scrutiny, XRP grapples with bearish momentum.

BlackRock has reportedly shelved its plans to launch a spot exchange-traded fund (ETF) based on XRP. This decision comes due to ongoing regulatory uncertainties and the unclear legal status of the cryptocurrency.

Report from Fox Business: Inside information revealed

Taking to X (formerly Twitter), Fox Business reporter Charles Gasparino reported the news, citing sources with direct knowledge of the matter.

This announcement was made following speculative comments from BlackRock CEO Larry Fink in a Fox Business interview. When asked about the possible launch of a spot XRP ETF, Fink firmly denied discussing it, stating, “I can’t talk about that!”

BlackRock has previously demonstrated its interest in the digital currency space, most notably with the launch of a spot Bitcoin ETF, the iShares Bitcoin Trust. Additionally, it has filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot Ether ETF, named the iShares Ethereum Trust.

Ripple’s regulatory hurdles

The SEC-Ripple court battle has taken a new turn. In a legal document submitted on the 11th of January to the United States District Court for the Southern District of New York, the SEC urged Judge Sarah Netburn to mandate Ripple to provide financial records from 2022 to 2023, along with “post-complaint contracts” that relate to “institutional sales.”

Meanwhile, the company has continued to exercise caution in its operations. This is exemplified by Ripple’s consideration of its Initial Public Offering (IPO)

CEO Brad Garlinghouse initially considered international markets primarily due to the challenging regulatory environment in the U.S., described by Garlinghouse as “hostile.” However, the company has now decided to pause its immediate IPO plans, adopting a more measured approach. 

XRP reaches new heights

The XRP Ledger (XRPL) has recently achieved a new milestone by recording its highest-ever monthly transaction volume in terms of XRP. As reported by The Block Data dashboard, the transaction volume has escalated to an unprecedented level, reaching 677.16 billion XRP at the time of writing.

XRP’s market performance

 XRP

Source: TradingView

In the broader cryptocurrency market context, XRP has been facing a downtrend. At press time, its price had fallen to $0.53. This decline in value is further evidenced by the Relative Strength Index (RSI), which registered at 35.58 at press time, indicating bearish momentum.

Additionally, XRP hovered below its 20-day moving average (MA). Moreover, the price candles were even seen grazing the lower Bollinger Band, both of which are often interpreted as signs of a potential further downturn or increased volatility in the asset’s price.

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Kamina is a content writer at AMBCrypto. With a Journalism degree and MBA in International Business, she expertly navigates blockchain, crypto, and AI, melding her academic insights with future-forward interests to create compelling narratives that educate and inspire in the evolving digital landscape.
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