- Rumors BlackRock had filed an XRP ETF began circulating.
- Reports indicate that BlackRock has not filed an XRP ETF application.
- Some XRP community members refuse to accept the rumors are false.
Major financial institutions have set their sights on crypto recently, with several high-profile asset managers filing for spot Bitcoin exchange-traded funds (ETFs). From Fidelity to BlackRock, legacy finance giants are looking to bring cryptocurrency into the fold through Securities Exchange Commission-approved investment vehicles.
The majority of ETF filings to date have focused on spot Bitcoin and Ethereum futures. However, the market was caught off guard yesterday by rumors of a potential XRP ETF filing by BlackRock.
BlackRock Coming for XRP?
The flood of spot Bitcoin ETF filings signals a growing institutional appetite for crypto exposure. Application approval could catalyze the next bull run by allowing regulated entry of big money managers, bringing billions of dollars of capital, as well as bolstering Bitcoin’s fundamentals to confer broader legitimacy.
With that in mind, speculation is mounting that asset managers are looking to file for spot ETFs based on other major cryptocurrencies, with XRP emerging as a prime target.
On November 13, rumors of a BlackRock XRP ETF filing spread throughout social media, triggering a 17% swing to $0.75 on the 21:00 UTC hourly candle. However, the momentum faded as it emerged that the filing was a hoax, setting off a downtrend that is on track to retest the $0.64 support zone.
DailyCoin reached out to BlackRock for further details, a spokesperson confirmed that the asset managers did not file an XRP ETF application.
The initial excitement quickly faded as it became clear that BlackRock’s XRP ETF rumors were greatly exaggerated, multiple sources chimed in with their take on the false rumors.
After initially confirming the XRP ETF rumor was true based on an entry in the Delaware list of corporations website, Bloomberg Analyst Eric Balchunas later tweeted that he had received confirmation from BlackRock that the filing was not from them. Balchunas added that “some whacko” must have gone to the trouble of filing the application.
As unusual as that sounds, legal expert Jeremy Hogan commented that fraudulently filing for an “XRP Trust” is “very easy and just costs $500.” Hogan explained that having a placeholder on the Delaware list of corporations website involves filing two documents and payment of the $500 fee.
Hogan speculated that bad actors may have fraudulently filed the paperwork, knowing that the resultant frenzy would send the XRP price higher. They could then use a leveraged long trade to glean substantial profits from the price spike.
However, the legal expert did not completely rule out the possibility that BlackRock has begun the process of launching an XRP ETF.
XRP Community Holds Hope
Despite the weight of evidence suggesting that the rumors are false, several XRP community members cling to the belief that BlackRock has indeed started the process of launching an XRP ETF.
The major sticking point appears to be the placeholder entry on the Delaware list of corporations website, which continues to show a live filing registered by “Daniel Schweiger” for “ISHARES XRP TRUST.” Schweiger is a managing director at BlackRock based in Delaware.
X account “WallStreetBulls” defended their position in support of the rumors being true, stating “PEOPLE WHO CALLED IT FAKE NOW ARE FAKE PEOPLE REALLY.” Despite feedback to the contrary, WallStreetBulls doubled down on the placeholder entry being evidence enough to support their position.
Former software engineer “Ingrid” wondered why the Delaware list of corporations placeholder entry remains live if the rumors are false. In a tongue-in-cheek comment, Ingrid suggested that the only other explanation is that the government website must have been hacked.
Why This Matters
It appears that the BlackRock XRP ETF filing is the deliberate spreading of misinformation, and the second such incident following false reports of a Bitcoin spot ETF approval last month. Both situations underscore the importance of tighter controls around filings to prevent malicious actors from manipulating prices.
Learn more about BlackRock’s confirmed Ethereum spot ETF filing here:
BlackRock Eyes Spot Ethereum ETF – ETH Price Soars Past $2K
Find out how the rise in altcoin valuations is driving market confidence here:
Altcoin Market Cap Rise Stirs Further Bullish Sentiment