The XRP price encountered wild fluctuations on Nov. 13 as a result of a fraudulent BlackRock XRP trust filing. However, this event should not influence the decision of the U.S. Securities and Exchange Commission (SEC) in regards to approving or delaying spot Bitcoin exchange-traded funds (ETFs), according to experts in the industry. The SEC has previously argued that the Bitcoin market can be manipulated and has rejected spot Bitcoin ETFs, citing a lack of market manipulation controls.
Bloomberg ETF analyst Eric Balchunas shared his opinion, stating that the fake XRP filing should not have a significant impact on the final decision by the SEC. He suggested that the incident serves to validate the SEC’s concerns about fraud and manipulation in the industry.
The filing on the Delaware list of corporations website indicated that BlackRock was creating the “iShares XRP Trust,” a precursor to launching an ETF. This led to a 12.3% spike in the price of XRP within 30 minutes before the filing was exposed as a hoax. BlackRock confirmed that the filing was made by someone impersonating its managing director, Daniel Schwieger.
Despite the deceitful nature of the filing, Michael Bacina, a partner at the law firm Piper Alderman, expressed skepticism about the incident causing a delay in ETF applications. He noted that such an isolated rumor would likely not provide a legal justification for postponing already pending ETF applications.
Lucas Kiely, CEO of wealth management platform Yield App, emphasized that the faked XRP filing would unlikely have an impact on the SEC’s decision regarding ETFs. He cautioned against overreactions in the crypto community and suggested that the incident should be viewed as a “keep-calm and carry-on” moment.
However, some analysts, such as James Edwards, a crypto analyst at Australian fintech firm Finder, argued that events like the fake XRP trust filing could undermine efforts to launch a Bitcoin ETF in the U.S. due to concerns about market manipulation and fraud in the crypto markets.
The incident involving the fake XRP trust filing has been referred to the Delaware Department of Justice for further investigation, indicating the seriousness with which regulators are treating such fraudulent activities.
As the industry continues to navigate these challenges, BlackRock has filed for a spot Ether ETF and is awaiting regulator approval in addition to its spot Bitcoin ETF. This underscores the ongoing efforts and interest in developing crypto-based financial products in the market.
In conclusion, while the fake XRP trust filing has caused significant disruptions and concerns, it remains to be seen whether it will have lasting implications for the cryptocurrency market. The industry is facing increasing scrutiny from regulators, and it is crucial for market participants to uphold integrity and transparency to foster a healthy and fair ecosystem for investors.