Significant Surge in XRP Price
On November 13, the XRP price surged by 16% following news of a purported ETF filing by BlackRock, which was later revealed to be fake.
The surge was triggered by a filing in Delaware suggesting that BlackRock had registered the “iShares XRP Trust,” hinting at the launch of an ETF. This caused the XRP price to soar to $0.75 within just 25 minutes of the news breaking.
However, Bloomberg ETF analyst Eric Balchunas confirmed the filing as fake after direct communication with BlackRock representatives. The XRP trust had been falsely listed on the Delaware website using the name of a managing director at BlackRock.
Rapid Price Fluctuation and Confirmation
Bloomberg’s James Seyffart remarked on the rapid price fluctuation, noting that the XRP trust filing was fake, while the Ethereum ETF filing is legitimate and confirmed.
Why The Odds Of A XRP ETF By BlackRock Were Slim
Scott Johnson, finance lawyer at Davis Polk elucidated why the XRP ETF by BlackRock had little chance to be true, given the current lack of a clear path for XRP to get approval without a CME futures market/SSA.
Jeremy Hogan, a renowned lawyer, explained the simplicity of spoofing the formation of an ETF and highlighted its fraudulent nature and ease of execution. He speculated that the perpetrator could have potentially capitalized on the price surge.
At press time, XRP traded at $0.6636 after briefly touching the 0.618 Fibonacci retracement level.
Hot Take: Beware of Fake News
The incident involving the fake filing for an XRP ETF by BlackRock serves as a reminder to always verify information before making investment decisions. Cryptocurrency markets are susceptible to manipulation through false news and rumors, so it’s essential to exercise caution and conduct thorough research before reacting to such events.
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