Key Takeaways
- The price of XRP surged by 12% in just 30 minutes following the news of the filing.
- ETF analysts have debunked the filing claims, confirming that the registration was false.
In a recent turn of events, the cryptocurrency industry experienced shockwaves as a fake application sparked a massive price pump and dump for XRP.
The bogus filing, labeled “BlackRock iShares XRP Trust,” appeared on November 14 in Delaware, suggesting the registration of an XRP ETF by BlackRock, the world’s largest fund manager. However, Bloomberg’s senior ETF analysts have since debunked these claims, confirming that the registration was false.
The matter has now been escalated to local authorities, as the fake filing appeared on an official government website. The price of XRP surged by 12% in just 30 minutes following the news of the filing, creating significant market volatility. However, the excitement was short-lived as it became evident that BlackRock had not submitted the application.
The Delaware Office of the Secretary of State has reported the incident to the state Department of Justice, indicating the involvement of state prosecutors in addressing the false filing.
This incident follows BlackRock’s legitimate registration for an Ethereum trust in Delaware the previous week, signaling the asset manager’s plans for an Ethereum ETF, which was confirmed through a Nasdaq filing. BlackRock spokespersons clarified that the XRP filing was indeed a fake, emphasizing the misleading nature of the misinformation.
The Securities and Exchange Commission (SEC) is currently reviewing various ETF applications from major traditional finance firms, including BlackRock’s application for a Bitcoin ETF. If approved, the U.S. would witness its first spot Bitcoin ETF, allowing investors exposure to cryptocurrency without direct ownership.
However, the SEC has consistently denied Bitcoin ETF applications over the past decade, citing concerns about market manipulation. Spot Crypto ETFs, especially those related to Bitcoin, have become a significant trend in the industry, with both the community and investors anticipating the potential approval of such funds.
In a similar incident in 2021, retail giant Walmart faced a fake press statement announcing a partnership with Litecoin. The fraudulent release briefly led to a nearly 30% gain in Litecoin’s price, emphasizing the potential market impact of misinformation. The gains were short-lived as Walmart swiftly issued a statement, disavowing the fraudulent press release and causing prices to retract.
