- A fraudulent Blackrock XRP ETF listing caused momentary market chaos, triggering a 13% XRP surge, which swiftly reversed
- ETF expert James Seyffart expressed concern over the event, stating the incident reflects poorly on the crypto industry
- Questions will now be asked as to how the hoax occurred, emphasizing challenges in the cryptocurrency space’s credibility
A Blackrock XRP ETF listing temporarily caused chaos in the crypto markets yesterday until it was revealed that the listing had been fraudulently created. The news led to a dramatic 13% jump in the value of XRP before the reality of the situation saw it lose all its gains in a manner reminiscent of the Bitcoin ETF fake news from last month. ETF expert James Seyffart said that the development “isn’t the best look for the crypto industry” and questions are being asked as to how the hoax happened in the first place.
“Some Whacko” Published iShares XRP Trust
The bombshell filing saw Blackrock purportedly file for a fund named the “iShares XRP Trust,” which was registered on Delaware’s official registration site. It was met with instant incredulity from many in the crypto space who couldn’t believe that Blackrock was legitimately behind it. XRP immediately jumped from $0.65 to $0.75 on the news, before it was revealed that Blackrock wasn’t legitimately behind it:
This is false! Confirmed by Blackrock by me. Some whacko must have added using Blackrock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ
— Eric Balchunas (@EricBalchunas) November 13, 2023
The news led to a swift capitulation in the newly acquired value of XRP, while attention turned to how the fake filing was able to be made at all; the Delaware Department of State hasn’t yet clarified how the inaccurate information found its way onto the website.
Not a Good Look
Bitcoin ETF expert James Seyffart told Bloomberg that the episode will do little to increase the reputation of the crypto sector at this critical time in its history:
This isn’t the best look for the crypto industry and definitely hurts the credibility of the good actors in the space, but it was sniffed out as fake pretty quickly. We saw a similar event last week that turned out to be real for the Ethereum trust. But an XRP ETF filing would be a bit of a stretch at this time.
The issue will almost certainly strengthen the resolve of the Securities and Exchange Commission to do as little as possible to approve anything related to cryptocurrencies, a stance that has become strengthened under Gary Gensler.
