Fake News on ETF XRP
This week, fake paperwork related to a BlackRock fund based on the XRP cryptocurrency spurred a rally in the token before the asset manager clarified that it was not responsible for the filing. XRP — a lesser-known cryptocurrency, though still one of the largest tokens — quickly gave back its gains, which at one point on Monday had reached about 13%. Similarly, a couple of weeks ago, a tweet falsely claiming that a Bitcoin ETF had been approved helped spark a big surge in the largest cryptocurrency before the news was debunked.
The incidents are the latest in a string of deceitful episodes that have accumulated over the years, though they’re arguably more potent right now since they’re happening at a time when US regulators are widely expected to finally grant their blessing on Bitcoin ETFs. Securities and Exchange Commission officials have in the past cited market manipulation and fraud as reasons such funds shouldn’t be available to American investors.
It wasn’t immediately clear how an XRP filing purporting to come from BlackRock had shown up on the official Delaware website that registers investment trusts incorporated in the state. (Officials in Delaware referred the matter to the state Department of Justice.) Coincidentally, it came just after Ripple Chief Executive Officer Brad Garlinghouse had -- ominously -- warned followers on the X social-media platform to be wary of “deepfake scam videos” and not to trust but “verify” news around Ripple.
