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Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Jan 22, 2024 09:48 UTC
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BlackRock Decides to Stay Away from XRP ETFs; Here’s Why
Despite backing Bitcoin, BlackRock chooses not to touch XRP due to ongoing SEC lawsuit and market volatility.
XRP wins legal victory classifying it as non-security, but faces technical hurdles with potential price drop.
BlackRock's move reflects larger market sentiment for careful evaluation of XRP's future before major commitments.
A recent tweet from Fox Business senior reporter Charles Gasparino reveals a significant decision by global investment giant BlackRock. Despite being a key player in spot Bitcoin ETFs, BlackRock has made it clear that a spot XRP ETF is not on their agenda.
This move comes at a critical time as the Securities and Exchange Commission (SEC) continues to battle with Ripple in the courts, which further complicates the situation.
Ripple’s Outlook Remains Positive…
During a recent CNBC interview, Ripple’s CEO, Brad Garlinghouse, hinted at significant moves for 2024. Garlinghouse brought up potential groundbreaking developments for both the crypto industry and the firm.
This follows Ripple’s legal victory, where the court ruled that XRP isn’t an investment contract, marking the defeat of SEC in trying to prove it as a security.
Read More: XRP Price Within Triangle Tests Support, Is It The Best Time To Buy Ripple?
….But BlackRock Wants to Play It Safe
However, BlackRock’s decision not to focus on launching a spot XRP ETF corresponds with the prevailing market sentiment around XRP. Technical analyst Ali Martinez highlighted the XRP’s struggle to maintain support at $0.55. A breach below this level could trigger a potential sell-off, potentially driving XRP to $0.34.
Maybe because of such volatility and risk factors, BlackRock is still taking time to consider launching XRP ETFs.
XRP ETFs Will Not Be Approved This Year Due to Legal Fight With SEC – Bloomberg Analyst
With the fate of XRP hanging in the balance, it’s clear that industry giants are taking a measured approach, carefully assessing risks and rewards before revealing their strategic moves.
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