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A fake filing that indicated asset management titan BlackRock was preparing to launch a spot XRP ETF (exchange-traded-fund) has been referred to the Delaware Department of Justice.
The filing still appeared on the Delaware Department of State’s Division of Corporations website as of 2:30 pm EST on Nov. 14.
“Our only comment is that this matter has been referred to the Delaware Department of Justice,” a spokesperson for the Delaware Department of State told CoinDesk.
Ripple’s native token, XRP, saw its price jump just minutes after the fake spot XRP ETF filing, before quickly reversing when BlackRock denied it had made such a filing.
This can’t be real. Ishares XRP Trust registered in Delaware? pic.twitter.com/pA3PX7i8Wu
— Summers (@SummersThings) November 13, 2023
Spot XRP ETF Filing Similar to iShares Ethereum Trust
This latest hoax filing has led to questions about how easy it appears to be to make them. The verification process behind filing for a Trust has drawn some criticism.
There are currently seven steps required to form a new corporate entity, according to the Delaware website, but is seems that can be done by filling out interactive PDF forms online.
Fears that the Bogus Spot XRP ETF Could Hinder Spot Bitcoin ETF chances
The U.S. Securities and Exchange Commission (SEC) has rejected several spot Bitcoin ETFs in the past, claiming a lack of protection for investors from “fraudulent and manipulative acts and practices.”
This latest surge in XRP’s price left some wondering if it may affect the SEC’s decision on whether to approve a batch of about a dozen applications for spot Bitcoin ETFs.
“There’s no doubt it is a bad look that arguably validates the ‘fraud and manipulation’ that the SEC used as grounds for past denial,” Bloomberg ETF analyst Eric Balchunas told CoinTelegraph.
But Balchunas remains confident that the fake spot XRP ETF filing will not “impact the situation with spot Bitcoin ETFs,” he said.
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