Cryptocurrency

XRP Fake Pump and Swift Dump: BlackRock Denies Spot XRP ETF Filing

BlackRock, the world’s largest asset manager, has categorically denied any plans to launch a spot XRP exchange-traded fund (ETF) in the near future.

The denial comes in response to a fake filing that surfaced, falsely suggesting that BlackRock had registered an iShares XRP Trust, leading to temporary speculation that the firm was preparing to introduce an XRP ETF.

A spokesperson for BlackRock informed Cointelegraph that the filing was fabricated and holds no connection to the company.

Read Also: BlackRock’s iShares Spot Bitcoin ETF Relisted on DTCC, BTC Bullish Trend Returns

Fake Pump and Swift Dump

The fake filing initially gained attention on Twitter, triggering a brief surge in the price of XRP by more than 10%. However, as soon as the truth about the falsified filing emerged, the price of XRP promptly retraced to approximately 65 cents per token.

The creation of this fake filing appears to be deliberately aimed at manipulating the XRP market. Fake news and rumors are usually employed by bad actors to artificially inflate the price of a cryptocurrency, enabling them to sell their own holdings at a substantial profit.

It is crucial to emphasize that, at present, there are no spot XRP ETFs available for trading in the United States. The Securities and Exchange Commission (SEC) has not granted approval for any spot XRP ETFs, leaving uncertainty as to when or if such products will receive regulatory clearance.

Sophisticated Scammers Exploit Investor Sentiment

The ability of scammers to produce a counterfeit filing that closely resembles an authentic BlackRock submission underscores the sophistication of their fraudulent methods. Investors must exercise caution in believing news or rumors that seem too good to be true.

Furthermore, it is essential to consider the ongoing legal battle between the SEC and Ripple, the company behind XRP. The outcome of this case carries significant implications for the future of XRP and its potential listing on US exchanges.

Read Also: Fake News of BlackRock Bitcoin ETF Approval Abruptly Sent BTC to $30,000

Exercising Caution Amidst Uncertainty

Given the recent occurrence of the fake filing and the SEC lawsuit, investors are advised to approach XRP with caution. The absence of authorized spot XRP ETFs in the United States, coupled with the uncertain approval timeline, necessitates careful consideration before making any investment decisions.

Remaining vigilant and conducting thorough research are paramount during these uncertain times. As the market navigates the complexities surrounding XRP, it is essential for investors to stay informed and exercise prudence when evaluating potential investment opportunities.


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Adedoyin Aka

Adedoyin is a graduate of Law and a Crypto & Blockchain expert who strongly believes that Blockchain is the future. At TimesTabloid, she focuses on crypto and blockchain educational content.

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