BlackRock XRP ETF Rumors Cause Price Spike and Market Manipulation Concerns
XRP price experiences fluctuations in response to counterfeit BlackRock trust filing | Credit: Shutterstock
Key Takeaways
- BlackRock denied to have submitted an application to introduce an exchange-traded product for XRP.
- The SEC has not yet approved any spot crypto ETFs.
- A well-known wallet moved 24 million XRP to Bitstamp after this fake news.
- The Dubai Financial Services Authority granted recognition to XRP as a crypto token.
- A U.S. district judge ruled that XRP is not a security.
On Monday, November 13, 2023, speculations arose suggesting that BlackRock, the largest asset manager globally, had submitted paperwork for the launch of an XRP Exchange-Traded Fund (ETF), subsequent to its registration of a spot Ether ETF.
Swiftly debunking the rumor, BlackRock issued a denial, affirming that it has not filed for the launch of an XRP exchange-traded product. Despite its denial, the price of the coin notably rose on the news, fueling concerns about market manipulation.
BlackRock Has Not Filed For An XRP ETF
Amidst growing interest in cryptocurrency Exchange-Traded Funds (ETFs), social media buzz suggested that BlackRock, the world’s largest asset manager, had submitted paperwork for a spot XRP ETF named “iShares XRP Trust.”
However, the rumor was swiftly dispelled by various individuals, including Bloomberg Senior ETF Analyst Eric Balchunas . Posting on the social media platform X, Balchunas refuted the news, asserting it’s falsily based on confirmation from BlackRock. He noted that the misinformation likely originated from someone incorporating false details using the names of BlackRock executives.
The erroneous news briefly drove the price of XRP up by 7%, only to see it retract and lose all gains.
Whale Transfers 24 Million XRP To CEX
As per Whale Alert’s data , an unidentified wallet with the address r4wf7enWPx…5XgwHh4Rzn moved 24 million XRP to Bitstamp, a digital asset exchange based in Luxembourg City. The value of the transferred tokens stood at $15.61 million at the time of reporting. The transfer to the exchange (CEX) suggests a potential sell-off, as the circulating amount of tokens experiences a notable increase.
This particular wallet has previously attracted attention from crypto enthusiasts due to its substantial shuffling of XRP in previous transactions.
Interestingly, following the whale’s transfer of coins to Bitstamp, the price saw a 15% spike.
Optimism for XRP Despite False Speculation
At present, the XRP price has experienced a slight increase of 1.23% in the last twenty-four hours, reaching $0.67. However, over the past week, market charts indicate a decline of 3.99%. Notably, the trading volume has surged by a significant 221.99% at the time of writing.
Although the news about BlackRock proved false, XRP has recently received positive developments. The Dubai Financial Services Authority (DFSA) granted recognition to XRP as a crypto token, and in July, District Judge Analisa Torres ruled in the Ripple case that ‘as a matter of law, XRP is not a security.’
While BlackRock has already submitted filings for a spot Bitcoin ETF, namely the iShares Bitcoin Trust, recent developments reveal that the world’s largest asset manager has also applied for a spot Ether ETF, known as the iShares Ethereum Trust.
Despite the approval of some ETFs based on crypto futures, the U.S. Securities and Exchange Commission (SEC) has not yet sanctioned any spot crypto ETFs. SEC Chairman Gary Gensler has indicated the consideration of eight to 10 spot Bitcoin ETF applications, with expectations that the SEC may approve multiple spot Bitcoin ETFs simultaneously, as suggested by analysts at JPMorgan.
