BlackRock Confirms No Plans for XRP Spot ETF

On January 21, BlackRock, the world's largest asset manager, confirmed that it does not plan to launch an XRP spot ETF.

Charles Gasparino, a well-known financial journalist, shared the news on Twitter, citing sources with direct knowledge of the matter. Gasparino further explained that the lack of clear regulation surrounding XRP was the main factor leading to BlackRock's decision.

The Fox Business journalist pointed to the ambiguous ruling in the ongoing lawsuit between Ripple and the SEC as a deterrent for large asset managers like BlackRock to get involved in XRP in the form of an ETF.

According to Gasparino, Judge Torres' ruling classified XRP as a regulatory gray area - not entirely a security and not entirely not a security. The reporter argued that the complexity of this ruling, coupled with the fact that it is subject to appeal, makes exploring XRP-based ETFs a risky venture for financial institutions.

** BlackRock had previously expressed interest in the cryptocurrency space, with CEO Larry Fink making remarks that suggested the company would partner with XRP. However, the July ruling created legal uncertainty for XRP, leading to the company's decision to pull out of launching an XRP spot ETF.**