- CoinShares data reveals a significant uptick in inflows, with $2.2 million entering XRP-related products, fuelling speculation about XRP potentially securing an ETF.
- Despite positive indicators, BlackRock denies plans for an XRP ETF, citing regulatory uncertainties. The denial prompts a price drop, with XRP falling 2.08% to $0.5492.
CoinShares data indicates a substantial increase in inflows, with $2.2 million pouring into XRP-related products, a significant jump from the previous week’s $900,000. This surge aligns with growing speculation that XRP might be the next cryptocurrency to secure an ETF, following Bitcoin.
BlackRock CEO Larry Fink added to the intrigue during a recent interview on FBN. When questioned about the likelihood of XRP ETFs, his cryptic response, “I can’t talk about that!” fueled further speculation in the market.
XRP has solidified its position as the second-best performer among altcoins in 2024, trailing only behind Cardano (ADA). Notably, XRP ETPs have attracted an impressive $3.1 million in inflows, highlighting its popularity among investors. The current momentum in XRP’s trend indicates a pivotal moment, supported by increasing confidence in its potential entry into the ETF market.
Santiment, an on-chain analytics platform, observes a significant bullish shift towards both XRP and Bitcoin. Following the historic approval of Bitcoin’s ETF, optimism pervades the market regarding the potential approval of other cryptocurrency ETFs, including Ethereum and XRP.
Santiment also highlights a rise in XRP sentiment and discussion rates to the highest level since May 2023, coinciding with ongoing discussions about the possibility of an XRP ETF.
BlackRock Denies ETF Possibility, XRP Price Drops
The world’s largest asset manager, BlackRock, has reportedly stated that it has no intentions of introducing a spot XRP exchange-traded fund (ETF). This information comes from Charles Gasparino, a prominent financial journalist, who shared the news through X, citing sources with direct knowledge of the situation.
SCOOP: @BlackRock has no plans for a spot $XRP ETF, according to people with direct knowledge of the matter story developing
— Charles Gasparino (@CGasparino) January 18, 2024
Gasparino went on to explain that the lack of regulatory clarity surrounding XRP is a key factor influencing BlackRock’s decision. The journalist from Fox Business pointed to the uncertain outcome of the ongoing Ripple vs. SEC case as a significant deterrent for major money managers like BlackRock to consider involving themselves with XRP in the form of an ETF.
Gasparino explains that Judge Torres’ ruling places XRP in a regulatory gray area, positioning it neither definitively as a security nor entirely exempt from this classification. The intricacies of this decision, coupled with its appealable nature, contribute to the perceived risk for established financial entities considering the exploration of XRP-based ETFs, as argued by the reporter.
As the journalist confirmed the news that BlackRock is not actively pursuing the spot XRP ETF, the XRP price has come under strong selling pressure. At press time, XRP is down 2.08% trading at $0.5492 with a market cap of $29.84 billion.
According to crypto analyst Ali Martinez, $XRP is currently struggling to sustain itself at the critical $0.55 support level. If this support proves inadequate, there is a potential for a sell-off scenario, with #XRP possibly dropping towards $0.34.
$XRP is currently grappling to maintain its footing at the crucial $0.55 support level. Should this support fail to hold, be prepared for a possible sell-off scenario that could see #XRP descending toward $0.34! pic.twitter.com/6oKObjpnnm
— Ali (@ali_charts) January 18, 2024
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