NEW YORK – BlackRock Inc (NYSE:), the world’s largest asset manager, has decided to halt its plans to launch an exchange-traded fund (ETF) based on the cryptocurrency . The decision comes amid ongoing regulatory uncertainties and a lack of clarity regarding XRP’s legal status.
The move is a significant shift for BlackRock, which had previously shown interest in the digital currency space, with CEO Larry Fink making remarks that hinted at the firm’s engagement with XRP. However, a July ruling that brought confusion over XRP’s legal standing has contributed to the company’s decision to step back from launching a spot XRP ETF.
In the broader context of the cryptocurrency market, XRP has been experiencing a downturn in value, reflecting a bearish sentiment among investors. The cryptocurrency’s price has dropped to around $0.50, a decline that is being attributed to market participants bracing for potential Securities and Exchange Commission (SEC) appeals, which could further complicate the regulatory landscape for digital assets like XRP.
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