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World’s Largest Asset Manager BlackRock Announced It has No Plan For Spot XRP ETF
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World’s Largest Asset Manager BlackRock Announced It has No Plan For Spot XRP ETF

The world’s largest asset manager, BlackRock, has said to have no plans to launch a spot exchange-traded fund (ETF) offering investors exposure to the native token of the XRP Ledger, XRP.

According to Fox Business reporter Charles Gasparino, sources with direct knowledge of the matter have revealed that BlackRock doesn’t plan on launching a spot XRP ETF. 

The news comes after BlackRock CEO Larry Fink said last week that he “can’t talk about that,” referring to the company potentially launching an XRP ETF.

Fink’s comments fueled speculation that the firm could be looking into launching a spot XRP ETF, which would come on the heels of it launching a spot Bitcoin ETF, the iShares Bitcoin Trust. 

The firm has also filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot Ether exchange-traded fund (ETF), called the iShares Ethereum Trust.

The fund’s goal is to “generally reflect the performance of the price of Ether,” as stated in the S-1 submitted to the SEC. 

iShares is the name of BlackRock’s ETF offerings, and the custodian for the funds would be Coinbase, a cryptocurrency exchange that relisted XRP recently.

As reported, XRP has recently reached a new milestone when it comes to the number of wallets on the network, as it has recently surpassed the 5 million mark, a notable increase from last year’s start of 4 million.

See Also: SEC’s Analogy For Crypto Investment Made XRP Lawyers, John Deaton, Laugh

Recently, XRP transactions have also seen a surge, maintaining numbers well over 5 million since the start of the year, further pointing to the cryptocurrency’s growing adoption. 

Over the past year, it’s worth noting, the price of XRP surged around 65%.

Nevertheless, a cryptocurrency analyst has suggested it could keep climbing to potentially reach $27 per token in a significant rise following Ripple’s legal victories over the U.S. Securities and Exchange Commission (SEC).

In 2020, Ripple faced a lawsuit from the SEC for supposedly breaching U.S. securities regulations by selling XRP without first registering with the agency.

Judge Analise Torres determined that XRP was indeed a security when Ripple initially sold it to institutional investors, but not when it was sold to the general public.

Judge Torres’ primary reasoning was that institutional investors who purchased XRP from Ripple likely understood that it possessed certain characteristics of a security. 

However, this information was not necessarily available to those who acquired XRP through cryptocurrency exchanges.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.