In an unexpected turn of events, the price of XRP witnessed a significant surge following the submission of a fraudulent “BlackRock iShares XRP Trust” name registration with the state of Delaware. The situation has escalated as state prosecutors are now involved, responding to this deceptive filing. As reported by Bloomberg on Tuesday, the Delaware Office of the Secretary of State has alerted the state Department of Justice regarding the misleading registration.
Delaware office alerts the DOJ over the fake filing
The incident unfolded on Monday with the filing of an application labeled “BlackRock iShares XRP Trust” in Delaware. If authentic, this would have signaled an imminent XRP ETF filing from BlackRock, mirroring the recent submission for an Ethereum ETF by the $8.5 trillion asset manager. The news of the filing quickly spread, causing the price of XRP, the fifth-largest digital asset, to surge by 12% within just 30 minutes. However, the excitement proved short-lived as it became apparent that BlackRock had not made the filing.
BlackRock, the world’s largest fund manager, had indeed registered for an Ethereum trust in Delaware the previous week. On the same day, it was confirmed that BlackRock had intentions for an ETH ETF, as detailed in a Nasdaq filing. A spokesperson for the asset manager clarified that the XRP filing was fraudulent. Presently, the U.S. Securities and Exchange Commission (SEC) is actively reviewing various ETF applications from renowned traditional finance firms. BlackRock has a standing application for a Bitcoin ETF before the Commission.
BlackRock continues ETF plans amid regulatory scrutiny
The potential approval of such an ETF would mark the introduction of a spot Bitcoin ETF in the U.S., providing investors exposure to cryptocurrency without the need to directly purchase and store it. It is worth noting that the SEC has consistently rejected all applications for a Bitcoin ETF over the past decade, often citing concerns about market manipulation as a primary reason for withholding approval. Despite this history, industry experts believe that it’s only a matter of time before Wall Street witnesses the emergence of a Bitcoin ETF.
Analysts at Bloomberg Intelligence have even suggested a 90% likelihood of a U.S. Bitcoin ETF by January 10. The anticipation surrounding the potential approval of such a financial product tends to have a notable impact on asset prices across the entire cryptocurrency market. As for XRP, its current trading value is $0.62, reflecting a decrease of over 4% in the past 24 hours, according to CoinGecko.
The crypto market experienced a whirlwind of events driven by a fake filing, highlighting the vulnerability of digital asset prices to speculative news. While regulatory developments surrounding mainstream financial products like ETFs often take center stage, this incident serves as a stark reminder of the volatile nature of the cryptocurrency space and the substantial impact of market sentiment on asset valuations. Investors and market participants are urged to exercise caution and discernment in navigating this dynamic landscape.