This clarification comes after a surge and subsequent fall in the market, triggered by a false business registration for a BlackRock XRP trust.
The erroneous registration, which mirrored past legitimate filings by BlackRock, named BlackRock Advisors and Daniel Schweiger as registered agents but was later confirmed to be a fabrication.
A Market Stirred by False Information
The crypto community was abuzz with speculation and excitement following the appearance of the fake registration on Delaware’s Division of Corporations website.
This led to a temporary surge in Ripple (XRP’s) price, which soared as much as 10% before plummeting back to its pre-surge levels of around $0.65, once the false nature of the news was confirmed.
Bloomberg ETF analyst Eric Balchunas was among the first to debunk the false filing, revealing BlackRock’s confirmation of its inauthenticity.
His post on X, formerly known as Twitter, dismissed the registration as the work of an imposter using a BlackRock executive’s name. This incident is not the first of its kind, where falsified corporate information has been used to manipulate the crypto market.
Previously, a similar tactic involving a fake headline about a BlackRock bitcoin ETF approval briefly spurred a market rally. However, to date, no spot bitcoin ETF has been approved.
The repetition of such deceptive practices highlights the vulnerability of the crypto market to misinformation and the need for diligent verification of news sources.
BlackRock’s Stance and Crypto Market Vulnerability
Despite the market excitement around BlackRock’s supposed foray into XRP ETFs, the asset manager has clarified its position.
While BlackRock has filed with the U.S. Securities and Exchange Commission (SEC) to launch spot bitcoin and ether ETFs, it has not taken any steps towards launching an XRP ETF.
The fake paperwork submitted, mimicking the format of previous legitimate filings for Delaware entities, highlights the ease with which market manipulators can create false narratives in the digital age.
This incident underscores the broader issue of misinformation in the crypto space, where even major media corporations and market analysts can fall prey to unverified reports.
The speculative nature of the crypto market often leads to rapid reactions to such news, impacting prices and investor sentiment.
The involvement of a major player like BlackRock in these rumors adds another layer of complexity, given the company’s cautious approach to crypto investments and the ongoing legal challenges surrounding XRP.
The false BlackRock XRP ETF filing serves as a stark reminder of the need for vigilance and thorough verification in the crypto market. It highlights how quickly unverified information can spread and impact market dynamics, even involving respected institutions like BlackRock.
The incident also reflects the speculative nature of the crypto market, which remains sensitive to rumors and news, whether true or false.