XRP (XRP) price action on Nov. 13 caused by fake BlackRock So industry observers say it looks good.
The U.S. Securities and Exchange Commission has previously claimed that the Bitcoin market may be manipulated and canceled a spot Bitcoin ETF, citing a lack of market manipulation controls.
Bloomberg ETF analyst Eric Balchunas told Cointelegraph that the false XRP filing had little impact on the SEC’s final decision.
“We doubt this will impact the situation with the Bitcoin ETF spot,” Balchunas said. However, he added that the incident could validate the SEC’s belief.
“There is no doubt that this is a bad appearance and arguably confirms the ‘fraud and manipulation’ that the SEC has used as grounds for denials in the past.”
Documents filed on the Delaware Business List website on November 13 show that BlackRock created the “iShares XRP Trust” – a precursor to the launch of ETFs.
The document caused XRP to surge 12.3% in 30 minutes, but XRP quickly rallied after the document was exposed as a scam by Balchunas and others who received confirmation from BlackRock that the document was produced by someone impersonating its managing director Daniel Schwieger. fell.
Michael Bacina, a partner at law firm Piper Alderman and chairman of the Australian Blockchain Industry Group, told Cointelegraph that he would be “surprised” if the SEC used the incident to delay ETF applications.
“Isolated rumors like this are unlikely to provide a legal basis for delaying an ETF application that has already been considered, especially if a deadline has already been set,” he said.
The number of lies, rumors and blatant attempts to manipulate the market #bitcoin, $ripple, $ETH, $SOL It seems more likely that the ETF-related news will be enough to reject all applications currently under review.
This is not a real market.
This is a scam flea market.
The SEC should crack down on this.— Parrot Capital (@ParrotCapital) November 14, 2023
Lucas Kiely, CEO of wealth management platform Yield App, said that fake XRP documents will not affect the SEC and stressed that the crypto community should “calm down.”
“This incident is unlikely to have any impact on this decision,” Keeley said.
He reiterated that many X (formerly Twitter) pundits publish fear-mongering headlines to attract audience attention and “deceive the market.”
“Overall, this is a time for calm and continuity for the industry, and potentially mild entertainment for BlackRock.”
XRP application ‘could easily derail’ ETF efforts
James Edwards, a cryptocurrency analyst at Australian fintech company Finder, said that the SEC has rejected several spot Bitcoin ETFs in the past on the grounds that investors were not subject to “fraudulent and manipulative acts and practices.” Protect.
Edwards claimed there was no reason why it would deviate from this view.
related: Bitcoin ETF will account for 99.5% of U.S. cryptocurrency ETF trading volume – Analyst
“Unfortunately, an incident like this could easily derail efforts to launch a Bitcoin ETF in the United States,” Edwards said.
“The onus is on ETF applicants like BlackRock to demonstrate that they can somehow protect clients from market manipulation and fraud, but that is difficult given the opaque nature of crypto markets.”
The fake XRP trust documents will be turned over to the Delaware Department of Justice for further investigation.
Latest news on fake XRP ETF filing: “Our only comment is that this matter has been referred to the Delaware Department of Justice,” a spokesperson (Delaware Department of State) said. Damn it. Someone is shitting their pants as we speak. https://t.co/Xea226Q1vT
— Eric Balchunas (@EricBalchunas) November 14, 2023
BlackRock applied for a spot ether ETF on November 9. In addition to the spot Bitcoin ETF filed in June, the company is currently awaiting regulatory approval.
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