Bloomberg ETF analyst Eric Balchunas doubts the SEC will deny ETFs after XRPs price spiked on a faked BlackRock XRP trust filing, but it is a bad look. 5272 Total views 10 Total shares Listen to article 0:00 Follow up Join us on social networksThe Nov. 13 XRP (XRP) price action stemming from a falsified BlackRock XRP trust filing shouldnt sway the United States securities regulators decision to approve or delay spot Bitcoin (BTC) exchange-traded funds (ETFs) but it isnt a good look, say industry observers.
The U.S. Securities and Exchange Commission has previously claimed the Bitcoin marketcan be manipulated and has knocked back spot Bitcoin ETFs, citing a lack of market manipulation controls.
Bloomberg ETF analyst Eric Balchunas told Cointelegraph that the fake XRP filing should have little to no impact on the SECs final decision.
We doubt this will impact the situation with spot Bitcoin ETFs, Balchunas said. However, he added that the incident could validate the SECs beliefs.Theres no doubt it is a bad look that arguably validates the fraud and manipulation that the SEC used as grounds for past denial.
The Nov. 13 filing on the Delaware list of corporations website showed BlackRock creating the iShares XRP Trust, a precursor to launching an ETF.
The filing resulted in XRPspiking 12.3% in 30 minutes before it tumbled back down just as quickly once the filing was outed as a hoax by Balchunas and others who received BlackRocks confirmation that the filing was made by someone posing as its managing director, Daniel Schwieger.
Michael Bacina, a partner at the law firm Piper Alderman and chair of the industry group Blockchain Australia, told Cointelegraph he would be surprised if the SEC used the incident to postpone ETF applications.
Its 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, he said.
The amount of lying, rumormongering and brazen attempts at market manipulation wrt to #Bitcoin, $XRP, $ETH, $SOL and more as if pertains to ETF news is enough to deny all applications currently pending.
This isn’t a real market.
It is fraud flea market.
The SEC should hammer it. Parrot Capital (@ParrotCapital) November 14, 2023
Lucas Kiely, CEO of wealth management platform Yield App, said the faked XRP filing wouldnt sway the SEC and stressed the crypto community should calm down.
It is highly unlikely that this incident will play any role in that decision, Kiely said.
He iterated that many X (formerly Twitter) pundits have posted fear-mongering headlines to capture audience attention and spoof the markets.Overall, this is a keep-calm and carry-on moment for the industry and likely a mild amusement for BlackRock.XRP filing could easily undermine ETF efforts
The SEC has rejected several spot Bitcoin ETFs in the past on claims that investors arent protected from fraudulent and manipulative acts and practices, argues James Edwards, a crypto analyst at Australian fintech firm Finder.
Theres no reason to suggest it will detract from that view, Edwards claimed.
Related: Bitcoin ETFs to push US slice of crypto ETF trading volume to 99.5% Analyst
Unfortunately, events like these could easily undermine efforts to launch a Bitcoin ETF in the U.S., Edwards said.The onus will be on ETF applicants like BlackRock to demonstrate that they are somehow able to protect clients from market manipulation and fraud, which is difficult, given the opaque nature of crypto markets.
The fake XRP trust filing will be referred to the Delaware Department of Justice for further investigation.
LATEST ON FAKE XRP ETF FILING: “Our only comment is that this matter has been referred to the Delaware Department of Justice,” the spokesperson (for Delaware Dept of State) said. Damn. Someone out there is crapping their pants as we speak.. https://t.co/Xea226Q1vT Eric Balchunas (@EricBalchunas) November 14, 2023
BlackRock filed for a spot Ether ETF on Nov. 9. It is now awaiting regulator approval in addition to its spot Bitcoin ETF filed in June.
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