BlackRock Abandons Plans for XRP Exchange-Traded Fund (ETF)
In a recent development, global asset management giant BlackRock has confirmed that it has no current plans to file for spot exchange-traded funds (ETFs) that will directly track the prices of XRP or Solana. This clarification comes after months of speculation about a potential XRP-tracking ETF.
The decision by BlackRock, based in New York, is primarily due to a combination of factors including limited client demand, regulatory uncertainties, and a strategic focus on assets with clearer institutional acceptance like Bitcoin and Ethereum.
One of the key reasons for BlackRock’s cautious stance is the low client demand for crypto ETFs beyond Bitcoin and Ethereum. BlackRock executives emphasize that these two cryptocurrencies currently "meet the bar" for investor interest and regulatory clarity.
Another reason is the regulatory uncertainty around altcoins like Solana and XRP, despite some recent positive regulatory developments. BlackRock appears to prefer waiting for clearer regulatory guidance before launching new crypto ETFs.
Moreover, XRP’s smaller market cap and Solana’s less established regulatory position make them less attractive compared to Bitcoin and Ethereum, which have already gained widespread acceptance and have existing ETFs.
The U.S. SEC’s cautious and delayed decisions on Solana ETF proposals also contribute to the regulatory ambiguity around such products.
BlackRock is reportedly monitoring the evolving regulatory landscape and competitive ETF filings by others before considering a move into XRP or Solana spot ETFs. This allows BlackRock to mitigate risks and learn from others' experiences before proceeding.
Nate Geraci, president at NovaDius Wealth Management, believes that BlackRock’s decision not to offer a XRP-tracking ETF will be seen as a mistake in the future.
It's important to note that BlackRock does not intend to offer a Solana ETF as well. This clarification puts an end to the ongoing speculation about XRP ETF approval.
References:
- SEC Delays Decision on Solana ETF Proposal
- BlackRock to Avoid XRP and Solana ETFs for Now
- BlackRock's CIO Confirms No Plans for XRP or Solana ETFs
- XRP ETF Approval Odds at 95% According to Bloomberg Analysts
- Polymarket Bettors Less Optimistic About XRP ETF Approval
By: Denys Serhiichuk for U.Today
Tags: #XRP News, #Ripple News, #XRP ETF
Price prediction for XRP and Solana remains uncertain as BlackRock, a major player in finance and investing, has announced no immediate plans to launch spot exchange-traded funds (ETFs) tracking these cryptocurrencies. The company's decision is attributed to factors such as limited client demand, regulatory uncertainties, and strategic focus on more institutionally accepted assets, like Bitcoin and Ethereum.
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