The cryptocurrency market experienced a momentary upheaval as the price of XRP skyrocketed by 12% within just 30 minutes after a fraudulent ETF application, titled ‘BlackRock iShares XRP Trust,’ surfaced in Delaware.<\/p>\n
On Monday, the crypto world got excited when XRP prices shot up due to an application called ‘BlackRock iShares XRP Trust.’ But the excitement faded when it turned out that BlackRock, the big fund manager, wasn’t behind it.<\/p>\n
The Delaware Office of the Secretary of State is not taking this lightly. They’ve alerted the state Department of Justice about this deceptive filing, adding a layer of seriousness to the incident.<\/p>\n
This incident connects with the SEC’s worries about manipulation in the crypto world. The SEC has been concerned about this in the Bitcoin market, leading them to reject some Bitcoin investments because they felt there weren’t enough safeguards against market trickery.<\/p>\n
Community responses to the fake filing have been mixed, with Bloomberg ETF analyst Eric Balchunas believing the fake filing won’t significantly impact the SEC’s decision. However, it does cast a shadow on the credibility of the crypto space.<\/p>\n
“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.”<\/p>\n
Further, Michael Bacina, a partner at Piper Alderman and chair of Blockchain Australia, expressed skepticism about the SEC using this incident to delay ETF applications, considering its isolated nature and the existing deadlines.<\/p>\n
“It’s unlikely an isolated rumor such as this would provide a legal basis for delaying ETF applications already being considered, particularly where they are already subject to deadlines.”<\/p>\n
However, the regulatory body has maintained a cautious approach, emphasizing the need for adherence to existing securities laws and investor protection.<\/p>\n
Meanwhile, the SEC is currently in the process of reviewing several ETF applications from major traditional finance firms, including one from BlackRock. If approved, this would mark the U.S.’s first spot in Bitcoin ETF, enabling investors to gain exposure to cryptocurrency without direct purchase. <\/p>\n
Despite a decade of rejections, primarily citing market manipulation concerns, experts foresee an imminent breakthrough. Experts predict a 90% chance of seeing one hit the market by January 10.<\/p>\n
News of potential ETF approval typically triggers positive market reactions. However, XRP, currently trading at $0.62, has seen a dip of over 4% in the past 24 hours amidst the complex dynamics of the crypto market.<\/p>\n