Benzinga - The cryptocurrency landscape is buzzing with discussions about the future of exchange-traded funds (ETFs), particularly for XRP (CRYPTO: XRP), in the wake of financial giant BlackRock's decision to reportedly refrain from launching a spot XRP ETF.
This cautious move, reported by Fox News' Charles Gasparino, followed Judge Analisa Torres' ruling in July 2023, which did not classify XRP as an "investment contract."
Benzinga attempted to contact BlackRock for a comment about Gasparino's report, but the company declined to respond.
Despite this, the regulatory ambiguity surrounding XRP persists, primarily due to its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
The SEC's lawsuit against Ripple, the company behind XRP, paints XRP as a security, whereas Ripple argues for its classification as a digital currency used for international payments.
Adding complexity to the case, the SEC has sought access to Ripple's financial details and contracts related to XRP's institutional sales after the complaint, aiming to unearth possible legal breaches.
In light of these developments, several industry experts have voiced their opinions.
Speaking with Benzinga, Daniel C. McCabe, CEO of Flexa, pointed to the lengthy process that led to spot Bitcoin ETFs' approval and suggested that similar patience may be required for XRP.
"An XRP ETF is inevitable, but the timing depends on the outcome of this ongoing litigation," McCabe said, highlighting XRP's legitimacy for trading on exchanges.
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Jess Houlgrave, COO at WalletConnect, believed spot Bitcoin ETFs have set a precedent for other cryptocurrencies. However, she noted the SEC's current lawsuit with Ripple might delay immediate approvals for XRP ETFs.
"The ongoing case with the SEC is likely to prevent an immediate approval," Houlgrave added, indicating a watchful approach from the SEC.
Bob Ras, co-creator of Sologenic, spoke to the heightened expectations for digital assets in the wake of spot Bitcoin ETF approvals.
"There is much more pressure for other digital assets to now get their spot ETFs," says Ras, indicating the shift in the legal landscape that makes an XRP ETF more likely.
Markus Levin, co-founder of XYO Network, commented on the impact of BTC ETFs on platforms such as Coinbase and the implications for XRP. "The BTC ETFs are a big success... It seems all but likely now. It’s just a matter of timing," he said, pointing to the changing tide in favor of XRP ETFs.
BlackRock's decision to hold off on an XRP ETF encapsulated the industry's cautious sentiment.
The firm's stance reflected an ongoing need for clarity in regulatory and legal frameworks governing cryptocurrencies. The outcome of the Ripple lawsuit is pivotal, not just for XRP but for the broader crypto market, as it could set a precedent for how digital assets are viewed and regulated in the future.
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