The cryptocurrency market witnessed a significant rise and subsequent decline in the price of XRP on November 13, with a fake filing claiming that BlackRock, one of the world’s largest asset managers, had created an exchange-traded product (ETP) of XRP. Here are the details…
XRP price rose due to fake news
On November 13, a Delaware filing surfaced revealing that BlackRock had registered the “iShares XRP Trust,” signaling a potential move to launch an exchange-traded fund (ETF). XRP experienced a rapid increase of 12% and reached $0.73 within 30 minutes of the news. However, the excitement was short-lived when Bloomberg ETF analyst Eric Balchunas confirmed that the application was fraudulent after speaking with BlackRock representatives. The entire incident unfolded within an hour, causing XRP to drop to $0.67.
Some ppl questioning whether BlackRock actually confirmed to me this is false. They did. A spokesperson confirmed. If that's not enough and you are still raging, they pls seek medical help.
— Eric Balchunas (@EricBalchunas) November 14, 2023
Reports highlighted details of a fraudulent filing on the official Delaware investment trust registration website showing the creation of an “iShares XRP Trust” by BlackRock. This misinformation led to a more than 15% increase in the price of XRP within an hour, but it fell to $0.66 after it was revealed that BlackRock was not the filing party. Bloomberg analyst Eric Balchunas highlighted the strangeness of the situation and questioned the identity of the asset impersonating BlackRock. Eric Balchunas revealed that the news was fake, stating that it was false and likely the result of someone impersonating BlackRock executives.
ETF developments affect the market
BlackRock kicked off the ETF excitement by filing for a spot Bitcoin exchange-traded fund in June. It then sparked a flurry of applications from rival asset managers. A spot ETF invests in Bitcoin on behalf of investors, unlike existing crypto futures ETFs that invest in derivatives. Thus, it puts upward pressure on the supply of the asset. Last month, after BlackRock incorrectly reported that the Bitcoin ETF had been approved, Bitcoin suddenly rallied 6% within an hour, revealing investors’ bullish expectations for the product. Users also found that BlackRock registered an entity called iShares Ethereum Trust earlier this week, which is reminiscent of the iShares Bitcoin Trust established by BlackRock a week before the Bitcoin ETF application.
ETH jumped 12% in one day in response to the news. The incident, along with BlackRock’s original filing for a spot Ether ETF on November 9, adds to the ongoing excitement surrounding ETFs in crypto asset markets. Regulatory scrutiny is expected to intensify as misinformation continues to impact cryptocurrency prices and investor sentiment. This incident highlights the importance of due diligence in the cryptocurrency space and the potential consequences of misinformation on market dynamics. As the crypto community goes through these events, it is of great importance that investors and enthusiasts remain vigilant and verify information before reacting to market developments.
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