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XRP price spikes after fake BlackRock ETF filing

XRP price spikes after fake BlackRock ETF filing

After news of BlackRock’s exchange-traded fund (ETF) filling broke out, XRP‘s (XRP) value spiked by 10%, albeit shortly, before returning to its previous valuation.

It turned out that the filing of iShares ETF initially believed to be by BlackRock, was fake, with a submission made to the Delaware Divisions of Corporations and published on their website.

The fake filing included information consistent with the company’s previous filings, such as the registered agent’s name and address. While resembling earlier ETF filings for Bitcoin (BTC) and Ethereum (ETH), this one specifically mentioned XRP.

Questions emerged regarding the iShares XRP Trust filing, as it remained actively listed on the ICIS Delaware website. 

The listing raised doubts about claims of its falsity, as one would expect a fraudulent filing to have been removed promptly.

Moreover, the application process for such filings demands stringent verification protocols. This includes the requirement of two notarized witnesses and the obligatory signature of the Grantor on the documents. 

Additionally, registered agents are mandated to verify the client’s identity thoroughly before agreeing to represent them in the filing process. These rigorous procedures initially blended weight to the argument favoring the filing’s authenticity.

Yet, these claims were disputed by BlackRock to ETF analyst for Bloomberg Eric Balchunas on November 13.

After users on X first noticed the filing, there was a subsequent 12% increase in the price of XRP. However, once it was confirmed that the filing was fraudulent, the price retreated to its previous level of $0.66.

Community reaction to the news

The news of fake filling sent ripples all over the crypto community, which in turn caused the spike and eventual retracement in the price of XRP. Leading journalists in the space to remind traders about the consequences of trading based on speculation.

A similar event occurred a month ago when Cointelegraph falsely reported news of the Securities Exchange Commission’s (SEC) approval of BlackRock’s iShares Bitcoin Trust ETF.

XRP price analysis

At the time of press, XRP was trading at $0.65, experiencing a downturn in value of -0.11% in the previous 24 hours, which comes after a negative change of -4.88% in a 7-day period, contrary to the gains made over the 30 days period that amounted to 34.19%.

XRP 24 hour price chart.  Source: Finbold
XRP 24-hour price chart. Source: Finbold

These value changes can largely be attributed to the attention to the ongoing developments surrounding the Ripple vs. SEC case and the eagerness of investors to find out what impact its resolution will have on this crypto.

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