Bitcoin

XRP’s Price Skyrockets on False Filing Frenzy: A Momentary Scare, But SEC’s ETF Approvals Stand Strong!

The Impact of the Falsified XRP Trust Filing on Bitcoin ETF Approval

On November 13, the XRP (XRP) price experienced a significant surge following a falsified BlackRock XRP trust filing. While this incident should not directly impact the United States Securities and Exchange Commission’s (SEC) decision to approve or delay spot Bitcoin exchange-traded funds (ETFs), it has raised concerns among industry observers.

The SEC has previously expressed concerns about the potential manipulation of the Bitcoin market and has rejected spot Bitcoin ETFs due to a lack of market manipulation controls. Bloomberg ETF analyst Eric Balchunas believes that the fake XRP filing is unlikely to affect the SEC’s final decision on Bitcoin ETFs. However, he acknowledges that the incident may validate the SEC’s concerns about fraud and manipulation.

The filing, which appeared on the Delaware list of corporations website, indicated that BlackRock was creating the “iShares XRP Trust” as a precursor to launching an ETF. This news caused a 12.3% spike in XRP’s price within 30 minutes, only to plummet once the filing was revealed to be a hoax. BlackRock confirmed that the filing was made by someone posing as its managing director, Daniel Schwieger.

Despite the attention this incident has received, legal experts and industry professionals do not believe it will impact the SEC’s decision on Bitcoin ETF applications. Michael Bacina, a partner at law firm Piper Alderman and chair of the industry group Blockchain Australia, suggests that an isolated rumor like this would not be sufficient grounds for delaying ETF applications already under consideration.

Lucas Kiely, CEO of wealth management platform Yield App, echoes this sentiment and urges the crypto community to remain calm. He believes that this incident is unlikely to play a role in the SEC’s decision and emphasizes that fear-mongering headlines and market manipulation attempts should not overshadow the industry’s progress.

James Edwards, a crypto analyst at Australian fintech firm Finder, argues that events like the fake XRP trust filing could undermine efforts to launch a Bitcoin ETF in the US. The SEC has repeatedly rejected ETF proposals, citing concerns about investor protection from fraudulent and manipulative acts. Edwards suggests that ETF applicants like BlackRock will need to demonstrate their ability to protect clients from market manipulation and fraud, which could be challenging given the opaque nature of crypto markets.

The fake XRP trust filing will be investigated further by the Delaware Department of Justice, adding another layer of scrutiny to the incident.

While the impact of the falsified XRP trust filing on Bitcoin ETF approval remains uncertain, it highlights the need for robust market manipulation controls and investor protection measures in the cryptocurrency industry. The SEC’s decision on Bitcoin ETFs will have far-reaching implications for the crypto market, and market participants are eagerly awaiting further developments.

Sources: Cointelegraph, Twitter

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