Fake BlackRock Filing Sends Crypto Soaring Temporarily

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XRP witnessed an unexpected surge in its price subsequent to the emergence of a deceptive business registration purporting to be a BlackRock XRP trust. The filing in question, which is still available on the website of Delaware’s Division of Corporations, bears a striking resemblance to genuine registrations commonly connected with the renowned asset management firm.

The “iShares XRP Trust” registered to BlackRock was the subject of a prominent item on the Division of Corporations website of the Delaware Department of State. The value of XRP briefly increased by about 15% as a result of the agitation this false filing created in the cryptocurrency community.

XRP price action in the last 24-hours. Source: Coingecko

XRP Euphoria Quickly Fizzles

In less than half an hour after the file became public, XRP shot up to $0.73. But, it erased all of its gains after BlackRock spoke with Bloomberg ETF analyst Eric Balchunas, who verified that it was a phony.

Addressing the broader market dynamics on that day, BlackRock CEO Larry Fink commented on the “pent-up interest in crypto,” attributing the speculative surge to wider geopolitical concerns.

This surge was reminiscent of a previous incident where a misleading headline about BlackRock’s bitcoin ETF approval briefly triggered a market rally.

Adding to the confusion, the recent misinformation suggested BlackRock’s expansion in crypto-related entities, compounding the ambiguity stemming from last week’s registration of an Ethereum trust.

XRP market cap currently at $35.7 billion. Chart:

Although XRP ranks fifth on CoinGecko’s list of notable cryptocurrencies, it might not be as well-known and favored as Bitcoin and Ether, which have attracted far more widespread interest and usage.

XRP Is Legit

Nevertheless, XRP continues to draw a devoted following of investors and enthusiasts and play a significant role in the constantly changing world of digital currencies.

James Seyffart, an ETF and cryptocurrency analyst, reiterated that the spot Ether ETF is genuine in the context of the fictitious listing, citing official confirmation from Nasdaq via a 19b-4 filing to the Securities and Exchange Commission.

BlackRock filed for a spot Ether ETF on November 9, indicating that the company intends to pursue its ETF ambitions beyond Bitcoin.

Bitcoin ETF Filing Approval

Requests for comment from the Delaware Department of State representative went unanswered. Furthermore, it wasn’t immediately apparent how the fictitious BlackRock name got into the website.

False information spread swiftly throughout the cryptocurrency industry in the face of great expectations that the SEC would approve a spot Bitcoin ETF.

One of the main causes of the most recent Bitcoin price increase, which broke past the $37,000 level from $25,000 in mid-June, is this.

Featured image from Times Tabloid

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