XRP Price Surge Due to False Filing Could Impact SEC's ETF Approvals

Industry Observers Weigh in on XRP Price Spike

The recent XRP price spike due to a falsified BlackRock XRP trust filing is unlikely to affect the decision to approve or delay spot Bitcoin exchange-traded funds (ETFs). The Securities and Exchange Commission (SEC) has expressed concerns about market manipulation in the Bitcoin market, which has led to the rejection of spot Bitcoin ETFs. The incident could potentially validate the SEC’s concerns about fraud and manipulation.

BlackRock’s creation of the “iShares XRP Trust” filing led to a 12.3% spike in XRP’s price within 30 minutes, only for it to plummet once the hoax was revealed. However, industry experts believe this isolated incident is unlikely to delay ETF applications currently under consideration.

Lucas Kiely, CEO of wealth management platform Yield App, emphasized that this incident should not sway the SEC’s decision and urged the crypto community to remain calm amid fear-mongering headlines.

XRP Filing ‘Could Easily Undermine’ ETF Efforts

James Edwards, a crypto analyst at Australian fintech firm Finder, believes events like the fake XRP trust filing could undermine efforts to launch a Bitcoin ETF in the U.S. The onus will be on ETF applicants like BlackRock to demonstrate their ability to protect clients from market manipulation and fraud.

The fake XRP trust filing has been referred to the Delaware Department of Justice for further investigation. Meanwhile, BlackRock has filed for a spot Ether ETF and is awaiting regulator approval alongside its spot Bitcoin ETF application.

Hot Take: Implications for Crypto Market

This incident highlights the challenges facing the crypto market as it seeks approval for spot Bitcoin ETFs. The need for robust measures against fraud and market manipulation is underscored by events like the falsified BlackRock XRP trust filing. While it may not directly impact current ETF applications, it serves as a reminder of the SEC’s concerns and may influence future decisions regarding cryptocurrency-based financial products.