Following the registration of a spot ether ETF, rumors arose on Monday that Blackrock, the world’s biggest asset management, had filed to establish an XRP exchange-traded fund (ETF). However, Blackrock soon debunked the idea, clarifying that it has not applied to develop an XRP ETF.
Is it true or a counterfeiting? Cryptocurrency markets may be volatile, and the latest volatility stemmed from speculations of BlackRock registering for an XRP ETF, resulting in over $6 million in liquidations as a result of the accompanying market frenzy.
Blackrock Has Not Filed An Application To Launch An XRP ETF
As interest in cryptocurrency exchange-traded funds (ETFs) rises, social media reports circulated Monday that Blackrock, the world’s largest investment firm, has launched a spot XRP ETF dubbed “Ishares XRP Trust.”
“BLACKROCK RECORDS TO APPLY FOR A NEW ISHARES XRP ETF TRUST COMPANY IN DELAWARE.”
However, a corrective post was published shortly after:
“DELAWARE SUBMISSION FOR ISHARES XRP ETF TRUST ENTITY IS FALSE.”
However, other individuals quickly disputed the claim, including Bloomberg Senior ETF Analyst Eric Balchunas, who informed his followers on social networking site X that the report is incorrect, citing Blackrock’s confirmation. He claimed that “someone must have added” the bogus material involving Blackrock executives. Because of the phony news, the price of XRP increased by 7% before regaining all of its gains.
This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ— Eric Balchunas (@EricBalchunas) November 13, 2023
With the crypto world anticipating the US SEC’s approval of a spot Bitcoin ETF, misleading information was disseminated swiftly. It is one of the key reasons for the current BTC price increase to more than $37,000 from $25,000 in mid-June.
Indeed, BlackRock applied for an Ether-based fund, which was true and contributed to the price of Ether rising. Surprisingly, the identical BlackRock contact name appeared on both the genuine Ether and phony XRP files.
Knowing the Role of BlackRock
Given BlackRock’s cautious posture in the crypto sector, the revelation of its involvement in an XRP ETF aroused concerns. Doubts grew as a result of XRP’s legal troubles with the SEC and its absence of a substantial regulated futures market in the United States, in contrast to Bitcoin and Ether.
While Ethereum rose to $2,064 following BlackRock’s iShares Ethereum Trust filing, questions persisted regarding the legality of BlackRock’s spot Bitcoin ETF application, which is presently being reviewed by the SEC. Opinions in the XRP community were mixed, with some seeing it as a beneficial step and others seeing it as a hazardous one.
Given its cautious posture in the crypto realm in the face of legal difficulties, experts questioned BlackRock’s pursuit of an XRP ETF. James Seyffart, on the other hand, affirmed the authenticity of the spot Ether ETF, which was legally accepted through Nasdaq’s filing to the Securities and Exchange Commission.
Trying to get Blackrock to confirm if this is them or an elaborate hoax/pump and dump— James Seyffart (@JSeyff) November 13, 2023
15% XRP Price Pumping and Dumping
Rumors arose in September that Blackrock had changed its emphasis to XRP. Nonetheless, several people quickly cautioned against this misunderstanding, clarifying that Blackrock was not switching from bitcoin to XRP. Despite the falsity of the Blackrock report, XRP has recently received some good news.
The Dubai Financial Services Authority just accepted XRP as a crypto token. In the Ripple lawsuit, District Judge Analisa Torres concluded in July that “as a matter of law, XRP is not a security.”
The price of XRP increased by 15% on reports of the BlackRock XRP ETF filing, however, it rapidly dropped as Bloomberg analysts determined it was fake.
The price is now at $0.66 and has been trending sideways over the previous 24 hours. The low and high for the day are $0.645 and $0.740, respectively. Furthermore, trading volume has grown by 250% in the previous 24 hours, showing that traders are interested.
SEC vs. Ripple: The Battle Isn’t Over Yet!
Despite the bogus ETF news, the SEC v. Ripple lawsuit remains critical for XRP’s journey in the face of market volatility. The court has set a February 12, 2024 deadline for the SEC and Ripple to complete remedies-related information. The SEC’s answer to Ripple’s remedy brief is due on April 12, 2024, while Ripple’s remedy brief is due on March 13, 2024. This legal dispute is still playing a crucial role in defining the destiny of XRP.
Blackrock has previously filed for an Ishares Bitcoin Trust spot bitcoin ETF, and last week, the world’s largest asset management filed for an Ishares Ethereum Trust spot ether ETF but not XRP ETF. Despite having authorized various crypto futures-based ETFs, the Securities and Exchange Commission (SEC) has yet to authorize any spot crypto ETFs. According to SEC Chairman Gary Gensler, the securities agency is reviewing eight to ten spot bitcoin ETF applications. Some experts, including JPMorgan analysts, believe the SEC will approve numerous spot bitcoin ETFs at the same time.