Bogus Buzz: BlackRock Denies XRP ETF Plans After Fake Filing Sparks Crypto Rollercoaster
A misleading filing falsely claiming that BlackRock (BLK) was planning to launch an XRP exchange-traded fund (ETF) circulated on social media, causing a temporary spike of over 10% in XRP's price. However, a spokesperson for BlackRock promptly refuted the claim, stating that the filing was fake. The asset management giant has previously filed with the U.S. Securities and Exchange Commission (SEC) for spot bitcoin and ether ETFs. The deceptive filing mimicked the forms used for those previous submissions but was not submitted by BlackRock.
It's worth noting that Delaware's corporate registration process has been exploited before, with similar incidents occurring in 2021. In those cases, filings suggested that Grayscale, a subsidiary of CoinDesk's parent company Digital Currency Group, would launch trust vehicles for tokens they had no plans for.
Despite the initial speculation fueled by ETF watchers and media outlets like Bloomberg, Bankless, and The Block, skeptics doubted the authenticity of the filing. BlackRock, known for its cautious approach to crypto, especially considering the ongoing SEC litigation involving XRP, was deemed unlikely to venture into creating an ETF for XRP. The incident highlights the susceptibility of the crypto market to misinformation and the need for careful verification before reacting to such news.
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