Blackrock (BLK) refuted claims on Monday that it is in the process of launching an exchange-traded fund (ETF) for XRP, clarifying that the circulating regulatory filing suggesting such a move is fake. Although the misleading news briefly propelled XRP's price up by more than 10%, it quickly retraced to its pre-news intraday price of approximately 65 cents.
While Blackrock has previously submitted filings to the U.S. Securities and Exchange Commission (SEC) for spot bitcoin and ether ETFs, the recent filing related to XRP turned out to be fraudulent. The paperwork mimicked previous forms submitted by Blackrock but was not officially filed by the asset management giant.
This incident is not the first time that Delaware's corporate registration process has been exploited to potentially manipulate cryptocurrency prices. In 2021, similar tactics were employed with filings that falsely suggested Grayscale, an asset manager, would launch trust vehicles for tokens it had no plans for.
Despite speculation sparked by ETF watchers and media outlets amplifying the fake filing, knowledgeable observers expressed skepticism about Blackrock, known for its conservative stance in the crypto space, venturing into creating an ETF for XRP. The digital asset is currently embroiled in active litigation with the SEC, further diminishing the likelihood of such a move.
Sean Tuffy, an industry expert, expressed doubt about Blackrock pursuing an ETF for a cryptocurrency facing ongoing securities litigation. Additionally, XRP lacks a significant regulated futures market in the U.S., unlike bitcoin and ether, further contributing to the skepticism surrounding the purported ETF plans.
