- Blackrock CEO avoids making much disclosure on XRP ETF.
- XRP, Bitcoin and Ethereum are the only cryptos to have regulatory clarity.
- JP Morgan was witnessed amassing 7.5 million XRP.
Now that Bitcoin ETFs are live, the BlackRock CEO Larry Fink comments that was made during an interview. Upon being asked about the possibility of a XRP ETF he said “I can’t talk about that.”
Though ambiguous, the statement carries value as major financial giants such as JP Morgan have been caught buying enough XRP for an ETF.
XRP, Bitcoin and Ethereum are the only three cryptocurrencies that are classified as “not security” in legal terms. Many Ethereum ETFs are also in line for approval.
Ambiguous Yet Directional
Larry Fink had an interview with a senior FOX correspondent Charles Gasparino. In the interview upon being asked if the XRP ETF was a possibility, Fink answered “I can’t talk about that.”
This has sparked rumors that a possible XRP ETF might be in the making even if it is in the earliest stage now.
It is to be noted that XRP was classified as not a security by the US District Court of the Southern District of New York in a case against the SEC.
The case led to a directional change in the world of cryptocurrencies as most ICOs were based on retail sales which made them hopeful of a non-security status by law. XRP alone jumped more than 60% following the judgement.
Ethereum was classified as not securities way back in 2014 by then CFTC chairman Heath Tarbert.
Finally, the classification of Bitcoin as a commodity by the CFTC act is well known.
Why does an XRP ETF Matter?
The most important factor is that Ripple is one of the three cryptocurrencies with a legal tag of not being a security. It won a landslide victory against the SEC and proved it legally that it cannot be termed as a security.
Also, it is one of the most important Layer-1 blockchains that have high network throughput. It gives almost instant finality.
Further, Ripple has a massive community support which makes it very easy to gather ETF subscribers once they are launched.
With Ethereum ETFs already filed, its just XRP which is yet to have its own ETF.
Would Gary Gensler’s Comments Matter?
Yes, Gary Gensler’s comment would pose some threat to an XRP ETF.
On January 10, 2024 Gensler commented on Bitcoin ETFs that the issuance of a Bitcoin ETF does not mean that all other cryptocurrencies would follow the same fate.
However, it is to be noted that Gary Gensler was among those who voted in favor of a Bitcoin ETF, not against. In a committee of five members including Gensler, two Republicans voted in favour of ETF while two democrats opposed it.
Though an XRP ETF might still take some time, the ease of using the XRP, the popularity of Ripple ODL and Ripple Ledger would surely lure ETF issuers to file applications for an XRP ETF soon.
Top Finance Giants are already Buying XRP
We have witnessed JP Morgan moving 7.5 Million XRP in November 2023. This amount of XRP tokens we feel would be enough to act as a seed fund for an ETF.
Another reason why financial giants might be accumulating XRP is that several of them have integrated blockchain for cross-border payments.
However it is not known whether they use another blockchain or have used Ripple. Yet, Ripple is the only major blockchain with an active cross-border payment system.
Ripple Ledger has also driven asset tokenization with its Ripple Ledger which is crucial for stock markets integration with the blockchain.
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