- 244% fund influx sparks XRP ETF speculation amid regulatory uncertainty.
- BlackRock says there are no plans for XRP ETF, citing regulatory ambiguity.
- XRP faces challenges, risks sell-off scenario; critical $0.55 support.
CoinShares reports a remarkable $2.2 million influx into XRP-related products, intensifying discussions about the potential launch of an XRP exchange-traded fund (ETF). Despite optimism, BlackRock denies immediate plans for an XRP ETF, citing regulatory uncertainties, triggering a 2.08% drop in XRP’s value to $0.5492.
Investors are keenly watching the XRP market as it emerges as the second-best performer among altcoins in 2024, closely following Cardano (ADA). XRP’s exchange-traded products (ETPs) attract substantial inflows, totaling $3.1 million, underlining its popularity. The surge in XRP’s momentum coincides with growing confidence in its prospective entry into the ETF space.
Amid speculations, BlackRock CEO Larry Fink’s cryptic response to questions about XRP ETFs adds fuel to the market buzz. The denial from BlackRock, the world’s largest asset manager, emphasizes the lack of regulatory clarity surrounding XRP, particularly due to the ongoing Ripple vs. SEC case.
Charles Gasparino, a prominent financial journalist, shares insights on BlackRock’s decision, linking it to the regulatory uncertainty surrounding XRP’s classification. The recent legal developments, particularly Judge Torres’ ruling, place XRP in a regulatory gray area, deterring major institutions from exploring XRP-based ETFs.
Crypto analyst Ali Martinez notes XRP’s struggle to maintain the critical $0.55 support level, warning of a potential sell-off scenario with XRP possibly dropping to $0.34. The market awaits further regulatory clarity and legal resolution for a clearer trajectory of XRP’s ETF prospects.
