BlackRock Denies Spot XRP ETF Application
BlackRock, a fund management giant, has refuted claims that it filed an application for a spot XRP ETF (exchange-traded fund.) The denial came after a fake filing surfaced, suggesting that BlackRock had submitted papers for an “iShares XRP Trust” to a Delaware entity. This led to a temporary surge in the XRP price, with double-digit gains. However, Bloomberg ETF analyst Eric Balchunas confirmed that the filing was false and someone had used the name of BlackRock’s managing director to spread the misinformation.
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
BlackRock Unlikely To File for Spot XRP ETF
Similar to the fake report about a spot Bitcoin ETF, the recent incident raises doubts about BlackRock’s involvement in the crypto space. Although the company is expanding its crypto ETF plans beyond Bitcoin and has recently filed for a spot Ethereum ETF, observers believe that the likelihood of BlackRock filing for a spot XRP ETF remains low. This skepticism stems from Ripple’s ongoing litigation with the SEC.
I could be proved wrong but I find it rather unlikely that BlackRock is going to file for an ETF for a coin that’s in active securities litigation https://t.co/jap2lMwv6N
— Sean Tuffy (@SMTuffy) November 13, 2023
Over $7 Million Worth Of XRP Futures Liquidated
XRP experienced significant price fluctuations following the fake filing’s emergence. It surged from 65 cents to 73 cents within minutes before retracting after BlackRock’s clarification. Coinglass data reveals over $7 million worth of XRP futures liquidations in the last 24 hours, with $5.1 million attributed to longs placed shortly after the fake filing. Furthermore, XRP ranked third in terms of liquidations in the past day, following Bitcoin and Ether.
Hot Take: Speculative Trading Poses Risks Amid Fake News
The recent episode involving a fake filing and subsequent market reaction underscores the dangers of speculative trading based on unverified information. It serves as a reminder for crypto investors to exercise caution and conduct thorough research before making investment decisions amidst heightened market volatility.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.