- A fake SEC filing claiming BlackRock was seeking approval for an XRP ETF caused prices to briefly surge before the hoax was revealed.
- The falsified filing claimed BlackRock wanted to list an XRP Trust ETF based on a relationship with Ripple, sending XRP up over 10% initially.
- The incident shows the volatility of crypto to rumors and misinformation, as XRP erased the gains once the bogus filing was officially debunked.
A bogus filing claiming that BlackRock was interested in offering an XRP exchange-traded fund sent prices for the token surging recently. However, the filing turned out to be fake, causing XRP to erase its gains. This highlights the impact that rumors and misinformation can have on the volatile crypto markets.
Details of the Fake Filing
On November 11th, a filing seemed to appear on the SEC‘s website stating that BlackRock had submitted an application for an XRP exchange-traded fund (ETF). This filing cited a supposed relationship between BlackRock and Ripple, the company associated with XRP. It claimed BlackRock was seeking approval to list shares of the XRP Trust ETF.
Immediate Price Impact
As soon as this falsified filing circulated online, the price of XRP spiked more than 10%. The token had been trading around $0.47 before the report emerged. It then jumped to over $0.52 within minutes as traders piled in.
Losses After the Hoax Was Revealed
However, it soon became clear that this filing was bogus and had been fabricated. The SEC then confirmed officially that no filing had been submitted by BlackRock regarding an XRP ETF. Once this hoax was revealed, XRP prices quickly sank again, erasing the gains.
Takeaway on Misinformation in Crypto
This incident highlights the sensitivity of cryptocurrencies to rumors, fake news and misinformation. The crypto space is prone to pump and dump schemes, market manipulation and spoofing. Traders should be cautious about reacting to unverified information before waiting for official confirmation. Nonetheless, the excitement around a potential BlackRock crypto ETF shows the impact these products could have if approved.
