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XRP Surge can’t sway SEC on Bitcoin ETFs – Analyst

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TL;DR

  • XRP hoax has minimal impact, keeping market stability intact.
  • Experts doubt XRP incident will alter SEC’s Bitcoin ETF stance.
  • XRP drama unlikely to affect SEC’s ETF timelines.

In a recent turn of events, XRP witnessed a sudden spike in its price following a falsified BlackRock XRP trust filing. Despite concerns raised by some industry observers, Bloomberg ETF analyst Eric Balchunas expressed doubt that this incident would sway the United States Securities and Exchange Commission (SEC) in its decision on spot Bitcoin exchange-traded funds (ETFs). Balchunas noted that while the hoax filing was a “bad look,” it is unlikely to significantly influence the regulatory landscape for Bitcoin ETFs.

The incident occurred on November 13 when a filing on the Delaware list of corporations website indicated BlackRock’s creation of the “iShares XRP Trust,” hinting at a potential ETF launch. This news prompted a rapid 12.3% surge in XRP’s price within a span of 30 minutes. However, the excitement was short-lived as the filing was soon exposed as a hoax. Eric Balchunas, along with others, revealed that the filing had been made by an imposter posing as BlackRock’s managing director, Daniel Schwieger.

Legal experts weigh in on the situation, expressing skepticism about the incident affecting the SEC’s decision-making process for Bitcoin ETFs. Michael Bacina, a partner at the law firm Piper Alderman, emphasized that an isolated rumor is unlikely to provide a legal basis for delaying ETF applications already under consideration. Bacina stated that such incidents should be viewed in the context of existing deadlines and may not alter the regulatory stance.

XRP Hoax Limited impact on SEC’s ETF stance

The recent surge in XRP’s price, triggered by a fabricated filing suggesting BlackRock’s involvement in an XRP trust, has raised questions about its potential impact on the SEC’s decisions regarding spot Bitcoin ETFs. Despite the abrupt market movement, industry analysts and legal experts remain largely unconvinced that this incident will significantly sway the regulatory direction.

https://twitter.com/ParrotCapital/status/1724231606234415606

Bloomberg ETF analyst Eric Balchunas asserted that the XRP price surge resulting from the fake BlackRock XRP trust filing is unlikely to have a lasting impact on the SEC’s stance on spot Bitcoin ETFs. While acknowledging that the incident is a “bad look,” Balchunas expressed doubt that it would substantially influence the final decision. He suggested that the SEC’s views on market manipulation controls and investor protection in the Bitcoin market would remain the primary factors guiding their ETF approval process.

The filing on the Delaware list of corporations website, claiming BlackRock’s creation of the “iShares XRP Trust,” led to a rapid surge in XRP’s price. However, the excitement turned to disappointment as the filing was revealed to be a hoax. Industry experts, including Eric Balchunas, promptly exposed the imposter behind the filing. Despite the momentary market turbulence, Lucas Kiely, CEO of wealth management platform Yield App, emphasized that the incident is unlikely to sway the SEC’s decision, urging the crypto community to remain calm.

Legal experts, including Michael Bacina of Piper Alderman, cast doubt on the notion that the fabricated XRP filing would provide a legal basis for the SEC to postpone ETF applications. Bacina highlighted that such isolated rumors are unlikely to alter the course of applications already in progress, especially when they are subject to existing deadlines. This perspective aligns with the broader sentiment that the SEC’s concerns regarding investor protection and market manipulation in the Bitcoin market will remain pivotal in their evaluation of ETF proposals.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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