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 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.