A fake filing claiming that global asset manager BlackRock registered an “iShares XRP Trust” in the State of Delaware has prompted an investigation by state authorities. The fraudulent registration, discovered on November 13, briefly sent shockwaves through the market, causing a momentary surge of approximately 12% in the price of XRP before the misinformation was exposed.
Delaware Authorities to Examine the Fake XRP ETF Filing
Delaware’s Division of Corporations, upon uncovering the false registration, has taken swift action by referring the matter to the Delaware Department of Justice. The misleading filing had suggested that BlackRock, a financial giant, was in the process of launching an XRP-linked exchange-traded fund (ETF) in the United States. The use of BlackRock managing director Daniel Schwieger’s name in the registration raises concerns of potential fraud, especially if XRP transactions were implicated.
Read more: BlackRock’s iShares Bitcoin ETF Resurfaces, Sparking Market Frenzy
Unraveling the Potential Impact on BlackRock and the Crypto Industry
The misleading registration not only caused a brief surge in XRP prices but also hinted at the possibility of BlackRock entering the cryptocurrency market with an XRP-linked ETF. While BlackRock did register an Ethereum (ETH) trust in Delaware on November 9, the U.S. Securities and Exchange Commission (SEC) has yet to approve the listing of any spot cryptocurrency ETF.
Conclusion
As the investigation unfolds, the crypto market remains vigilant, awaiting insights into the motives behind the fake BlackRock filing. The incident serves as a stark reminder of the susceptibility of the industry to misinformation and the potential consequences it can have on market dynamics. Authorities will play a crucial role in determining the validity of the claims, and the outcome may shape not only BlackRock’s future in crypto but also the regulatory landscape for cryptocurrency ETFs in the United States.
