July 24, 2024
Blockchain News

Crypto Proponents Doubt Veracity of Blackrock-XRP Rumors

Over the past few days, rumors have circulated on social media regarding Blackrock, the world’s largest asset manager, allegedly shifting its crypto investment focus from Bitcoin to XRP. One of the widely shared articles responsible for fueling these speculations was published by Investing.com, titled “Blackrock rumored to shift crypto focus from Bitcoin to XRP.” The article explicitly disclosed that it was “generated with the support of AI and reviewed by an editor.”

However, many crypto community members remain skeptical about the authenticity of these claims, emphasizing that the information remains unsubstantiated and lacks credible sources. Some have gone as far as branding it as fake news, including prominent crypto influencer Budhil Vyas, who vehemently expressed his doubts on the social media platform X:

“Fake News Alert: Blackrock is NOT shifting from Bitcoin to XRP. Understand the rumors that the world’s largest asset manager is dumping BTC for the Ripple-backed digital asset.”

Certain X users have pointed out a connection between Ripple and Blackrock. They highlighted that Robert Mitchnick, currently the head of Digital Assets at the asset management firm, previously held a position as the head of strategy and product marketing at Ripple Labs.

While these rumors swirl, Blackrock finds itself in a holding pattern, awaiting approval from the U.S. Securities and Exchange Commission (SEC) for its spot Bitcoin exchange-traded fund (ETF) application. The asset management giant has consistently committed to adhering to regulatory frameworks. Blackrock CEO Larry Fink has notably stated that crypto possesses “a differentiating value versus other asset classes,” he believes that “it’s so international it’s going to transcend any one currency and currency valuation.”

It’s essential to consider that SEC Chairman Gary Gensler has explicitly stated that all crypto tokens, except Bitcoin, should be classified as securities. Currently, the SEC is embroiled in a legal battle with Ripple Labs regarding the offers and sales of XRP.

Adding to the intrigue, earlier this month, there were speculations that Blackrock was accumulating a significant amount of Bitcoin in preparation for its spot Bitcoin ETF launch. Although the SEC has deferred its decision on all site Bitcoin ETF applications, some analysts anticipate that the securities regulator may approve most, if not all, of them by mid-March next year.

In conclusion, the crypto world remains uncertain about Blackrock’s supposed shift from Bitcoin to XRP. As the crypto space continues to evolve, it is essential to rely on credible sources and verified information to make informed decisions and avoid falling prey to unsubstantiated rumors.