XRP Experiences Price Volatility Amidst False BlackRock ETF Filing Rumors

A false filing suggesting that BlackRock was creating an XRP exchange-traded product caused a 12% spike in XRP’s price.

Rumors circulated on Monday suggesting that BlackRock, the world’s largest asset manager, had registered to launch an XRP exchange-traded fund (ETF) following its registration of a spot ether ETF.

However, BlackRock quickly denied the rumor, confirming that it has not filed to launch an XRP exchange-traded product.

XRP’s price surged to $0.73 within 30 minutes of the news, but it quickly retraced after the filing was confirmed as fake by Bloomberg ETF analyst Eric Balchunas, who spoke with BlackRock.

BREAKING 🚨

Blackrock has confirmed $XRP ETF it is FAKE 🚨, according to Senior ETF analyst.

Mr. @EricBalchunas is an analyst for @Bloomberg has communicated w/ BLACKROCK and they debunked the ISHARES XRP TRUST filed in Delware’s website. pic.twitter.com/9lo7Xo5134

— EDO FARINA 🅧 XRP (@edward_farina) November 14, 2023

Several individuals, including Bloomberg Senior ETF Analyst Eric Balchunas, debunked the rumor, and BlackRock itself confirmed that the news of an XRP ETF filing is false. 

The misleading registration, which briefly appeared on the state’s Division of Corporations on November 13, led to a momentary 12% surge in the price of XRP before it lost its gains when the falsehood was exposed.

Fake Filing on Delaware Website Claims BlackRock’s ‘iShares XRP Trust,’ Referral to State Authorities for Investigation

In response to the false filing claiming that BlackRock registered an “iShares XRP Trust,” a spokesperson for the Delaware Department of State stated on November 14 that the matter would be referred to state authorities. 

The Delaware Justice Department may take action in response to the referral, but the specifics of such actions are unclear at this time. 

The individual or individuals behind the fake listing reportedly used BlackRock managing director Daniel Schwieger’s name to list the XRP trust on the Delaware website, suggesting potential fraud if XRP transactions were involved.

The misleading filing had suggested that BlackRock might be planning to launch an XRP-linked exchange-traded fund (ETF) in the United States, a significant development in the crypto space. 

While BlackRock registered an Ether trust in Delaware on November 9, the U.S. Securities and Exchange Commission has not yet approved the listing of any spot crypto ETF.

BlackRock Expands Crypto ETF Aspirations with Spot Ether ETF Filing Despite False XRP Listing Rumors

BlackRock has signaled its intention to expand beyond Bitcoin with ETF aspirations, as evidenced by its filing for a spot Ether ETF on November 9.

Despite the fake XRP listing, the spot Ether ETF is real, officially confirmed via a 19b-4 submission by Nasdaq to the United States Securities and Exchange Commission.

BlackRock has already filed for a spot bitcoin ETF called Ishares Bitcoin Trust, and recently, it filed for a spot ether ETF called Ishares Ethereum Trust.

While the U.S. Securities and Exchange Commission (SEC) has approved some ETFs based on crypto futures, it has not yet approved any spot crypto ETFs. 

SEC Chairman Gary Gensler mentioned that the regulator is considering between eight to 10 spot bitcoin ETF applications, and there is anticipation for the approval of multiple spot bitcoin ETFs at once, including those from JPMorgan.

In September, there were rumors that BlackRock was shifting its focus to XRP, but these were also swiftly debunked. Despite the false news about BlackRock, XRP has seen positive developments, with the Dubai Financial Services Authority approving XRP as a recognized crypto token. 

Additionally, in July, District Judge Analisa Torres ruled in the Ripple case that “as a matter of law, XRP is not a security.”

In response to the misinformation, BlackRock CEO Larry Fink acknowledged the market’s “pent-up interest in crypto,” even though there hadn’t been any genuine approvals for a spot Bitcoin ETF.